21Shares, WisdomTree, and VanEck Eye UK Listings as FCA Lifts Crypto ETN Ban

Core Viewpoint - The FCA is lifting its ban on crypto exchange-traded notes (cETNs), allowing firms to list these products for retail investors starting October 8, 2023, marking a significant shift in the UK’s regulatory stance towards digital assets [1][2][3]. Group 1: Regulatory Changes - The FCA will permit ordinary investors to purchase cETNs listed on recognized exchanges, reversing a prohibition that was in place since early 2021 [2][3]. - The decision aligns the UK with other countries in the EU and the U.S., facilitating access to millions of retail investors and potentially billions of pounds in inflows [3][8]. - The FCA acknowledges the maturation of the crypto market, citing improved consumer protections and a better understanding of the products [4][8]. Group 2: Market Impact - Major asset managers like 21Shares and VanEck are preparing to list new crypto ETNs in London, indicating a readiness to expand into the retail market [1][5]. - 21Shares plans to support a responsible expansion into retail offerings, having previously listed physically backed crypto ETNs for professional investors [5]. - WisdomTree is also reportedly exploring the option of retail cETNs as the ban is lifted [7]. Group 3: Partnerships and Offerings - 21Shares and VanEck are collaborating with digital wealth management platform Stratiphy to provide retail investors access to crypto ETNs as soon as the regulatory changes take effect [6].