Half of Young UK Investors Plan To Invest as FCA Approves Crypto ETNs From October 8

Core Insights - The U.K. will allow asset managers to offer crypto exchange-traded notes (ETNs) to retail investors starting October 8, 2023, lifting a ban that has been in place since 2021 [1][8] - A survey indicates that 50% of U.K. investors aged 18-24 are open to investing in crypto ETNs, reflecting strong demand among younger investors [1][4] Industry Developments - The lifting of the FCA embargo on crypto ETNs provides access to the London Stock Exchange, one of the largest securities exchanges globally [2] - Blackrock is expected to be among the first to list a Bitcoin ETN in London, with other firms like Bitwise, WisdomTree, and 21Shares likely to follow [2] Investor Sentiment - The IG survey shows that 30% of adults in the U.K. are open to investing in crypto ETNs, with the figure rising to 50% for those aged 18-24, significantly higher than the current crypto ownership rate of approximately 12% [4] - The average value of crypto holdings among U.K. investors is reported to be £1,842 [4] Tax Considerations - The potential tax advantages of investing in regulated crypto products may attract investors, as deposits in stocks and shares ISAs can be sheltered from capital gains tax up to £20,000 per year [6] - Self-Invested Personal Pension (SIPP) accounts also offer government contributions that can offset income tax, making them appealing for crypto investments [6] Key Advantages - Among those likely to invest in crypto ETNs, 19% cited the ability to hold crypto within tax-efficient wrappers as a significant advantage [9]