FCA Lifts ETN Ban Today — but UK Retail Investors Still Waiting for Market Access
The Financial Conduct Authority (FCA) formally lifted its ban on crypto exchange-traded notes (ETNs) on Wednesday, but UK retail investors are still unable to buy them — a delay that critics say exposes deep flaws in Britain’s regulatory course of.
“Today’s information that UK retail buyers face yet one more delay in accessing crypto ETNs is each embarrassing and fully predictable,” mentioned Laurent Kssis, director at CEC Capital and an ETF buying and selling guide advised CryptoNews.
“The FCA introduced in August that the ban would lift on October 8th, but right here we’re on launch day discovering that buyers might have to attend almost every week longer as a result of the regulator solely started accepting prospectuses on September twenty third — simply two weeks earlier than the supposed launch date.”
Sources counsel the London Stock Exchange (LSE) and FCA are nonetheless finalising operational particulars, together with whether or not a brand new buying and selling phase is required for retail-eligible crypto ETNs. This uncertainty might push the primary listings to October thirteenth or later.
Consumer Protection or Bureaucratic Paralysis?
“The FCA has had since their June session to coordinate with the LSE on implementation particulars, but they’re nonetheless ‘going backwards and forwards’ whereas UK buyers stay locked out of a market their European and American counterparts have accessed freely,” Kssis mentioned.
He referred to as the state of affairs “regulatory incompetence masquerading as client safety.” Bitcoin’s surge previous $120,000this yr has amplified frustration amongst retail buyers unable to realize regulated publicity by UK channels.
London’s Liquidity Problem
Despite the FCA’s rhetoric about investor selection, the London market stays an afterthought within the broader European crypto panorama. According to LSE knowledge, crypto ETN buying and selling volumes signify simply 0.59% of complete European exercise, averaging £624,000 per day.
By comparability, European exchanges dealt with €26 billion in crypto ETN buying and selling in 2024. “The UK has fallen embarrassingly behind within the world race for crypto market management,” Kssis added.
“This rollout confirms what many people feared — the FCA’s lifting of the ban is extra about political optics than real market entry,” mentioned Kssis.
Industry Sees Hope Amid Frustration
Still, some stay optimistic that the ban’s removing indicators long-term progress. “The FCA lifting its ban on retail entry to crypto ETNs is a large step towards embracing innovation,” mentioned Russell Barlow, CEO of 21Shares.
“There’s huge pent-up demand for regulated cryptoasset merchandise within the UK, with 12% of adults already holding crypto instantly by unregulated platforms,” mentioned Barlow.
Barlow mentioned regulated Bitcoin and Ethereum ETNs might quickly qualify for ISA and SIPP inclusion — enabling tax-efficient publicity to cryptoassets. “It’s an awesome first step,” he mentioned, “but there’s nonetheless a protracted solution to go earlier than cryptoassets are absolutely built-in into the monetary system.”
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