UK allows individual investment in crypto asset ETNs…can be included in pensions and ISAs

The UK has officially lifted the ban on individual investors investing in crypto assets (cryptocurrencies) listed exchange-traded notes (ETNs).

On the 9th (local time), according to crypto-focused media CoinDesk, the Financial Conduct Authority (FCA) announced it will withdraw restrictions on individual investor access to crypto ETNs (cETNs). With this measure, individual investors will be able to directly purchase ETNs listed on FCA-recognized exchanges such as the London Stock Exchange (LSE).

Crypto ETNs are bond-like products that track the prices of Bitcoin or Ethereum, allowing investors to gain exposure to price fluctuations without holding the actual tokens. The FCA said, "As market maturity and the regulatory environment have improved, we will allow individuals to participate in the crypto market through legitimate investment means."

According to the outlet, HM Revenue and Customs (HMRC) stated in a separate policy document that crypto ETNs will be recognized as assets within stocks and shares ISAs and registered pension accounts. Accordingly, investors will be able to operate Bitcoin and Ethereum ETNs tax-free. From April 2026, these products will be classified under the 'Innovative Finance ISA (IFISA)' category, but the tax advantages will remain.

Currently, many issuers' crypto ETNs, including 21Shares, WisdomTree, and ETC Group, are listed on the London Stock Exchange and have been traded only by institutional investors. With the FCA's decision, these products will be opened to retail investors as well.

However, US-listed Bitcoin ETFs such as BlackRock's are dollar-denominated overseas products and are not subject to FCA regulation, so they are not included in this opening. Major ISA operators such as IG, AJ Bell, and Hargreaves Lansdown are expected to allow access gradually after reviewing the rules.