Overview

• The FCA’s four-year prohibition on crypto exchange-traded notes ended on Oct. 8, allowing Bitcoin- and Ether-linked notes on recognised exchanges under strict listing, disclosure and Consumer Duty rules, with crypto derivatives still barred.
• Retail access is not live yet as the LSE and FCA finalise practical details such as prospectus acceptance and potential trading-segment changes, with sources indicating first listings could slip to next week.
• The regulator reaffirmed that ETFs investing directly in crypto remain out of scope under the UK fund framework, and ETNs carry issuer credit risk because they are unsecured debt rather than direct crypto ownership.
• Issuers and platforms preparing offerings include 21Shares, WisdomTree, VanEck, CoinShares, Bitwise and BlackRock, with 21Shares partnering with Stratiphy and platforms such as Freetrade and IG planning listings once approvals complete.
• Investor interest is strong, with Morningstar reporting a record €972 million in European crypto ETP inflows in Q3 and IG/Norstat finding 30% of UK investors—rising to 50% of 18–24 year-olds—open to ETNs, while HMRC has yet to clarify ISA and SIPP eligibility.