Core Points - The U.K. has lifted its multi-year retail ban on crypto exchange-traded notes (ETNs), indicating that the digital asset market has matured enough for regulated investment products [1] - Retail investors can now purchase crypto ETNs listed on FCA-recognized exchanges, such as the London Stock Exchange (LSE) [1][3] - The Financial Conduct Authority (FCA) will start accepting prospectuses for new products from September 25, leading to a delay before retail investors can add cETNs to their portfolios [3] Crypto ETNs Overview - Crypto ETNs are exchange-traded debt notes that track the prices of cryptocurrencies like bitcoin or ether without granting direct ownership [2] - Unlike global ETNs, crypto ETNs on the London Stock Exchange must be fully backed by underlying assets held by regulated custodians and cannot utilize leverage [2] Tax Implications - The U.K. tax authority, HM Revenue & Customs, has confirmed that crypto ETNs can be held in stocks and shares Individual Savings Accounts (ISAs) and registered pension schemes, allowing for tax-free returns [4] - Starting April 6, 2026, cETNs will be reclassified as Innovative Finance ISA (IFISA) investments, maintaining their tax advantages [5] Market Access and Providers - The London Stock Exchange already lists several crypto ETNs from issuers like 21Shares, WisdomTree, and ETC Group, which were previously available only to professional investors [6] - Major ISA providers, including IG, AJ Bell, and Hargreaves Lansdown, are expected to review the new policy before enabling cETNs on their platforms, with a gradual rollout anticipated [7]