UK Lifts Ban on Crypto ETNs, But ETFs Still Blocked

The UK is preparing to reopen the doors to crypto exchange-traded notes (ETNs) after a five-year ban. Starting next week, retail investors will be able to trade ETNs as long as they’re listed on a recognized UK exchange approved by the Financial Conduct Authority (FCA).

ETNs are different from exchange-traded funds (ETFs). They’re debt instruments tied to crypto prices, not backed by the assets themselves. The FCA has made it clear: ETFs are still off the table until the regulatory framework is updated.

Big players are watching closely. BlackRock is exploring ways to launch its iShares Bitcoin product in the UK. Bitwise CEO Hunter Horsley said he’s eager to finally serve more European investors. Ian Taylor of CryptoUK added that the decision puts the UK back in line with global markets.

Still, there’s a wait. CoinShares, Bitwise, and others may not launch products immediately because the FCA only started accepting applications in late September. Reviews and feedback could take time. ETFs remain banned, unlike in the US where spot Bitcoin ETFs have been trading since early 2024.

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