UK Lifts Retail Ban on Crypto ETNs, Allowing Tax-Free Access via Pensions and ISAs

The U.K. has lifted its multi-year ban on crypto exchange-traded notes (ETNs), enabling retail investors to hold cryptocurrency products like bitcoin and ether ETNs in tax-advantaged accounts such as pensions and Individual Savings Accounts (ISAs). The Financial Conduct Authority (FCA) announced this change, arguing that the digital asset market has matured enough for regulated investments. Crypto ETNs, which are debt instruments tracking the prices of cryptocurrencies, will now be available on recognized exchanges like the London Stock Exchange. These ETNs must be fully backed by physical assets held by regulated custodians. From April 6, 2026, these products will be classified as Innovative Finance ISA (IFISA) investments. Major ISA providers are expected to gradually roll out access as they adapt to the new regulations. However, U.S.-listed spot crypto ETFs remain ineligible for U.K. investors, due to exchange and regulatory mismatches. This development reflects the government's push to integrate digital finance into mainstream investment products and diversify savings options for investors.

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