FCA Lifts ETN Ban Today — but UK Retail Investors Still Waiting for Market Access

Core Viewpoint - The Financial Conduct Authority (FCA) has lifted its ban on crypto exchange-traded notes (ETNs), but UK retail investors still face delays in accessing them, highlighting flaws in the regulatory process [1][2]. Regulatory Delays - The FCA had announced the ban's lift on October 8th, but operational details with the London Stock Exchange (LSE) are still being finalized, potentially delaying the first listings to October 13th or later [2]. - Critics argue that the FCA has had ample time since June to coordinate with the LSE, yet delays persist, leaving UK investors unable to access a market available to their European and American counterparts [3]. Market Dynamics - Crypto ETN trading volumes in London account for only 0.59% of total European activity, averaging £624,000 per day, while European exchanges handled €26 billion in crypto ETN trading in 2024 [5]. - The UK is perceived to be lagging in the global crypto market, with frustrations growing among retail investors as Bitcoin prices surge [4][5]. Industry Perspectives - Despite the frustrations, some industry leaders view the lifting of the ban as a positive step towards innovation, noting significant demand for regulated crypto products in the UK [7]. - A notable statistic indicates that 12% of UK adults already hold crypto directly through unregulated platforms, suggesting a strong interest in regulated options [7].