UK FCA Proposes 10% Crypto ETN Exposure for Retail Funds
- The U.K.’s Financial Conduct Authority (FCA) suggested that retail investment funds can hold up to 10% of their assets in cryptocurrency exchange-traded notes (ETNs).
- This proposal applies to UCITS (“Undertakings for Collective Investment in Transferable Securities”) and some non-UCITS retail schemes (NURS).
- The FCA aims to mitigate risks associated with crypto ETN exposure through this limit.
- The regulator first allowed retail access to such funds in October 2025, lifting a previous ban from 2021.
- Investment vehicles providing exposure to cryptocurrency have been crucial for mainstream adoption.
The FCA’s move represents a significant step towards broader acceptance of crypto products in the U.K., addressing concerns about regulatory hurdles that could hinder competitiveness against other regions.
With the proposed 10% limit, the FCA seeks to balance investment opportunities while managing risks associated with crypto ETNs. (Source)
