UK Mulls Crypto Exchange Traded Notes for Select Investors

The UK might soon allow regulated exchanges to offer crypto exchange-traded notes to professional investors.

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  • UK’s FCA has shifted its position on crypto exchange-traded notes (ETNs).
  • The regulator said in a statement the products might be considered.
  • The approval of such products is subject to certain conditions.

The United Kingdom’s Financial Conduct Authority (FCA) said on Monday it “will not object” to requests from regulated exchanges to set up a market segment for crypto asset-backed Exchange Traded Notes (cETNs).

Exchange-traded notes (ETNs) are types of unsecured debt securities issued by an investment bank or asset management company. They are often used to track assets or indices that other ETPs cannot. Unlike traditional bonds with interest payments, the prices of ETNs fluctuate like stocks.

FCA to Allow Crypto ETNs Access By Professional Investors

According to a statement dated March 11, the FCA is likely to allow Recognised Investment Exchanges (RIEs) to launch crypto ETNs provided the exchanges “continue to make sure sufficient controls are in place” and the products “meet all the requirements of the UK Listing Regime.”


“With increased insight and data due to a longer period of trading history, the FCA believes exchanges and professional investors should now be able to better establish whether cETNs meet their risk appetite,” the regulator wrote.

The FCA stated that crypto ETNs would be available only to professional investors, such as credit firms and investment institutions permitted to operate in financial markets. Retail customers are banned from accessing the products and any other crypto derivatives “due to the harm they pose.”

RIEs that want to create a new UK-listed market segment for crypto ETNs must submit their applications to the FCA, after which the regulator will consider them “on a case-by-case basis.”

Read about the UK’s plan to regulate stablecoins and crypto staking:


UK Eyes Stablecoin and Crypto Staking Regulations

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.