Companies weigh in as UK prepares to reverse crypto ETN ban

The UK is set to reverse its crypto exchange-traded notes (ETN) ban starting next week, marking a significant shift in the nation's cryptocurrency regulatory landscape. The Financial Conduct Authority (FCA) announced that while crypto ETNs will become available to retail investors, exchange-traded funds (ETFs) require updated regulatory frameworks before approval.

This pivotal decision positions the UK to compete with European markets where crypto ETNs have gained substantial traction among institutional and retail investors. The move comes as global demand for regulated cryptocurrency investment products continues surging, with Bitcoin and Ethereum leading institutional adoption worldwide.

Industry experts anticipate this regulatory change could boost UK cryptocurrency market liquidity and attract blockchain-focused fintech companies to London's financial district. The distinction between ETNs and ETFs remains crucial, as ETNs offer direct cryptocurrency exposure while ETFs provide diversified digital asset portfolios.

Major cryptocurrency exchanges and asset managers have lobbied extensively for this reversal, arguing that the ban limited UK investors' access to legitimate DeFi investment opportunities. The regulatory shift reflects growing recognition of cryptocurrency's mainstream financial integration and could catalyze broader digital asset adoption across traditional British investment portfolios.