UK digital asset market poised for 20% growth as FCA lifts four-year retail ban on crypto ETNs, IG says

The UK cryptocurrency market is set for significant expansion after the Financial Conduct Authority (FCA) officially lifted its four-year ban on crypto Exchange-Traded Notes (ETNs) for retail investors. Investment giant IG predicts this regulatory breakthrough could drive 20% growth in the UK's digital asset sector, marking a pivotal moment for Bitcoin, Ethereum, and broader cryptocurrency adoption.

The FCA's decision reverses its 2021 restriction that previously blocked retail access to crypto ETNs, citing consumer protection concerns. This regulatory shift positions the UK to compete with European markets where crypto ETNs have flourished, potentially attracting billions in institutional and retail investment flows.

The lifted ban enables ordinary investors to gain exposure to cryptocurrency markets through regulated financial products, reducing barriers to Bitcoin and altcoin investment. Market analysts expect increased trading volumes, enhanced liquidity, and greater mainstream adoption of blockchain-based assets. This development could accelerate DeFi integration and establish the UK as a leading cryptocurrency hub, benefiting exchanges, fintech companies, and digital asset service providers while offering retail investors safer cryptocurrency exposure through traditional brokerage platforms.