The FCA has finally lifted its ban on crypto exchange-traded notes, opening the door for UK retail investors to gain exposure to digital assets through regulated markets. The problem is, that door isn’t actually open yet.
Despite the rule change, major investment platforms say it will be months before anyone can buy one. Hargreaves Lansdown, the country’s largest broker, said crypto ETNs won’t appear on its platform until early next year, citing the need to build a new “client journey” and complete investor assessments. AJ Bell said it also plans to offer them, just not immediately.
That means even though crypto ETNs are now technically allowed, they’re still out of reach for most people.
To make things murkier, HMRC has added another layer of confusion. It says investors can hold crypto ETNs in a stocks and shares ISA – but only until April 2026. After that, they’ll only qualify for the little-used Innovative Finance ISA, which doesn’t carry Financial Services Compensation Scheme protection.
Wealth manager Jason Hollands called the move “bizarre,” pointing out that investors who’ve already used their £20,000 allowance this tax year will miss out entirely. Others argue it sends a mixed message, encouraging crypto adoption while quietly pushing it into a corner of the tax system few people use.
For now, 17 crypto ETNs are listed on the London Stock Exchange from issuers like Fidelity, WisdomTree and 21Shares, but unless you’re an institutional investor, you can only watch from the sidelines.
The FCA’s decision was meant to mark a new era for crypto regulation in Britain. Instead, it’s turned into another waiting game.
