Bitcoin ETNs Return to the UK Starting Tomorrow: What You Need To Know

Core Viewpoint - The UK's Financial Conduct Authority (FCA) is lifting a four-year ban on cryptocurrency exchange-traded notes (ETNs) for retail investors, marking a significant shift in the country's regulatory approach to digital assets [2][4]. Group 1: Regulatory Changes - Starting October 8, retail investors in the UK will be able to purchase Bitcoin ETNs, which provide indirect exposure to Bitcoin [1][2]. - The FCA's decision allows access to ETNs referencing Bitcoin or Ethereum, which must be listed on recognized investment exchanges like the London Stock Exchange [3]. Group 2: Market Context - The lifting of the ETN ban is seen as a positive step, but experts caution that it does not provide direct access to cryptocurrencies, which may limit its impact [1][4]. - The UK has faced criticism for overregulation in the digital asset space, which has hindered its competitiveness as a global hub for cryptocurrencies [5]. Group 3: Historical Background - In 2021, the FCA prohibited the sale and marketing of crypto-related derivatives and ETNs to retail consumers due to concerns over volatility and market abuse [6].