From the 8th of October 2025, FCA-approved UK investment exchanges will be able to offer cETNs to retail investors.
What is a cETN?
A cETN is a crypto exchange-traded note. It’s an investment which tracks the value of a cryptocurrency. Investors don’t own coins but are paid according to their performance. Like any crypto investment, risk remains high and there is no compensation scheme. It’s likely that the cETNs available will be limited to Ethereum and bitcoin ETNs at first.
Why the change?
The crypto market has matured, and a better understanding of and demand for cETNs mean that the FCA has decided it’s time that these investments are open to the public. Previously, these types of investment were only open to professional investors.
What are the limitations?
The FCA has advised that only UK FCA-approved investment exchanges can offer cETNs. Now, other crypto products like options and futures are not available to retail investors.
Investment exchanges looking to trade cETNs will need to adhere to strict marketing rules and update their client communication, risk messages, and tests of appropriateness before they offer the investments. Exchanges should seek out advice from FCA compliance consultants. The changing guidance from the FCA on making cETNs available to retail investors opens up investment opportunities for the general public and shows a shift in acceptance of the ever-changing market for crypto investment. Although the change suggests some loosening of rules, investment exchanges will still need to adhere to tight controls by the FCA, and it’s recommended that they seek advice from FCA compliance consultants first.
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