The UK's Financial Conduct Authority has proposed allowing certain retail investment funds to hold up to 10% of their assets in cryptocurrency exchange-traded notes.
The FCA made the suggestion for UCITS schemes and some non-UCITS retail schemes in its latest quarterly consultation paper. These structures are regulated open-ended vehicles that pool money from retail investors into managed portfolios, similar to US mutual funds. Our proposed 10% limit for UCITS and NURS would also mitigate the risk of significant impacts arising from crypto ETN exposure, the FCA wrote. The move follows the regulator's decision in October 2025 to lift a ban and allow retail investors direct access to such products. Commentators have previously criticized regulatory hurdles in the UK for placing the country at a disadvantage to its peers. The proposal represents another step toward wider acceptance of crypto exchange-traded products under the ETN banner.