What happened? The FCA lifted its ban on crypto ETNs but retail investors in the UK still can’t buy them.
The FCA officially ended its ban on retail access to crypto ETNs, but operational steps weren’t finished in time for the planned launch. The regulator only began accepting prospectuses two weeks before the date and is still coordinating with the LSE, so listings may be pushed back to October 13 or later. Industry voices call the timing and delays frustrating and say it looks more like regulatory paralysis than a smooth reopening.
Who does this affect? UK retail investors, exchanges, and crypto issuers are directly hit by the delay.
Retail investors who were expecting regulated exposure to Bitcoin and Ethereum through ETNs now remain locked out while other markets open. Issuers, brokers, and the London Stock Exchange face uncertainty and delayed revenue as they wait to list products and attract flows. At the same time, European and US investors already have access, so UK participants risk losing business and credibility during the hold-up.
Why does this matter? It risks dragging down London’s liquidity, competitiveness, and investor access to regulated crypto products.
The delay keeps trading volume and liquidity away from London, reinforcing the city’s lag behind continental European markets where crypto ETNs already trade heavily. Reduced local liquidity and postponed listings could push investors to trade on other exchanges and hurt market makers and the LSE’s revenue. Over the longer term, repeated slow rollouts and regulatory uncertainty could damp adoption of regulated crypto products, slow ISA/SIPP inclusion, and weaken London’s standing as a global financial hub.