This decision marks a significant policy shift as the regulator seeks to balance consumer protection with growing demand for regulated crypto investment products.
In a statement released on Friday, the FCA said retail investors will soon be able to trade cETNs on recognized investment exchanges (RIEs) approved by the authority.
The FCA’s latest stance follows a consultation process launched earlier this year, during which the regulator proposed allowing retail access to these products.
“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood,” Geale stated, adding:
In light of this, we’re providing consumers with more choice, while ensuring there are protections in place. This should mean people get the information they need to assess whether the level of risk is right for them.
While cETNs provide indirect exposure to crypto assets, they are different from US spot crypto ETFs, which hold the underlying assets directly.
Despite the regulatory update, the FCA maintained its ban on retail access to other high-risk crypto derivatives, such as futures and options linked to digital assets. According to the authority, these products pose a greater risk of significant losses for non-professional investors.
The regulator also emphasized that UK retail customers remain unable to directly invest in US spot crypto ETFs or similar offshore products due to existing rules.
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