FCA proposes 10% crypto ETN cap for UK authorised funds
The UK's FCA has proposed a 10% cap on crypto ETN holdings for authorised investment funds. A five-week public consultation closes on 13 July 2026.
FCA proposes 10% crypto ETN cap for funds
The Financial Conduct Authority (FCA) has proposed a rule that limits authorised investment funds to holding a maximum of 10% of their assets in crypto exchange-traded notes (ETNs). An ETN is a debt instrument traded on a stock exchange that tracks the price of an underlying asset, in this case a cryptocurrency. The proposal applies to UCITS funds and most non-UCITS retail schemes. Long-term asset funds and non-UCITS retail alternative investment funds are excluded from the scope of the proposal.
Consultation window closes 13 July 2026
The FCA opened a five-week public consultation period alongside the proposal. The deadline for responses is 13 July 2026. During this period, firms and individuals can submit written feedback to the regulator. The FCA will review responses before deciding whether to finalise the rule.
"Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we're providing consumers with more choice, while ensuring there are protections in place.", 2025. — David Geale, Executive Director of Payments and Digital Finance, Financial Conduct Authority
Retail crypto ETN access already expanded in 2025
The FCA lifted a separate ban on retail investor access to crypto ETNs in October 2025. That earlier decision allowed individual retail investors to buy crypto ETNs listed on FCA-approved UK exchanges directly. The June 2026 proposal is a distinct measure. It targets fund-level allocation, not direct retail purchases.
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