The UK’s financial regulator, the Financial Conduct Authority (FCA), has proposed allowing certain retail investment funds to hold up to 10% of their assets in cryptocurrency exchange-traded notes (ETNs).
The financial regulator has suggested that UCITS (“Undertakings for Collective Investment in Transferable Securities”) and certain non-UCITS retail organizations (NURS) invest in crypto ETNs in its latest quarterly consultation document.
UCITS and NURS are similar to mutual funds in the United States in that they are regulated, open-ended structures that pool retail investors’ money into managed portfolios.
“Our proposed 10% limit for UCITS and NURS would also mitigate the risk of significant impacts arising from exposure to crypto ETNs,” the FCA wrote.
The FCA’s proposal marks another step on the path to wider acceptance of crypto exchange-traded products (ETPs) in the UK under the ETN banner. The regulator first allowed retail investors to access these funds in October 2025, lifting a ban in force since 2021.
Investment vehicles that allow users to gain exposure to cryptocurrencies without having to purchase and hold the assets themselves have been at the forefront of widespread adoption of cryptocurrencies for several years. Regulatory barriers to their wider use in the UK have sparked criticism from commentators who say it risks putting the country at a disadvantage compared to its peers.
