UK FCA floats proposal to let retail funds invest up to 10% in crypto ETNs

The UK Financial Conduct Authority (FCA) is proposing to widen access to crypto-linked investment products by allowing certain retail-oriented funds to allocate up to 10% of assets to cryptocurrency exchange-traded notes (ETNs), CoinDesk reported. The proposal would apply to both UCITS funds and certain Non-UCITS Retail Schemes (NURS). Both are UK-regulated open-ended vehicles that pool retail capital and are run by professional asset managers, similar in function to U.S. mutual funds. Under the plan, eligible funds could add crypto ETNs to portfolios, subject to a 10% ceiling. The FCA said the cap is intended to limit the effect of cryptocurrency volatility on overall fund performance. The move follows the UK’s broader shift toward easing access to crypto ETNs. In October 2025, the FCA lifted a ban introduced in 2021 that had prevented retail investors from trading cryptocurrency ETNs, reopening the market to individuals. ETNs offer price exposure through traditional securities accounts, an approach often viewed as a more familiar route than directly buying and holding crypto assets. The FCA’s latest proposal seeks to balance that access with tighter risk controls, as the UK faces ongoing competitive pressure to keep pace with other major markets on product availability.