UK Removes Crypto ETN Retail Ban: Bitcoin and Ethereum Investments Now Available in Pensions and ISAs

The UK Financial Conduct Authority (FCA) has officially lifted the multi-year retail ban on cryptocurrency exchange-traded notes (ETNs), marking a significant milestone for digital asset adoption. This regulatory shift allows retail investors to purchase crypto ETNs tracking Bitcoin (BTC) and Ethereum (ETH) prices through FCA-recognized exchanges like the London Stock Exchange (LSE). Crypto ETNs are exchange-traded debt instruments that track underlying cryptocurrency prices without granting direct coin ownership. Unlike global ETNs, London Stock Exchange-listed crypto ETNs must be fully physically backed by assets held with regulated custodians and cannot utilize leverage. The UK tax authority HMRC confirmed that crypto ETNs can now be held within tax-advantaged accounts including Stocks and Shares ISAs and registered pension schemes, enabling investors to earn tax-free returns. Starting April 6, 2026, cETNs will be reclassified as Innovative Finance ISA (IFISA) investments while maintaining their tax benefits. Major ISA providers including IG, AJ Bell, and Hargreaves Lansdown are expected to gradually implement these changes as they adapt compliance systems. While the ban was officially lifted, retail access may experience brief delays as the FCA only began accepting product prospectuses on September 25. The London Stock Exchange already lists multiple crypto ETNs from issuers like 21Shares, WisdomTree and ETC Group, previously available exclusively to institutional investors. However, popular US-listed spot crypto ETFs like BlackRock's IBIT remain inaccessible to UK retail investors under current FCA regulations.