UK Financial Watchdog Eases Path for Crypto ETNs, Keeping Retail Investors on the Sidelines

The cryptocurrency sector has reacted positively to the UK’s Financial Conduct Authority (FCA) announcement on March 11, stating it will simplify the process for listing crypto investment products, specifically crypto exchange-traded notes (ETNs), for professional investors. However, retail investors are still excluded from participating, reflecting a cautious stance towards broader crypto market accessibility. Europe’s regulatory framework does not support exchange-traded funds (ETFs) for single assets like Bitcoin or Ether, positioning ETNs as the preferred exchange-traded product (ETP) in both the EU and the UK. This recent development is seen as a step towards integrating cryptocurrency into the regulated financial market,