Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Everything You Need to Know About Crypto ETNs as a UK Investor
Ruby Layram
17th Jun 2025
Incase you weren’t already aware, the FCA is proposing a lift of the ban on crypto ETNs and it’s fair to say the crypto investors in the UK are pretty chuffed!
And, when investors are happy, the price of Bitcoin (and other crypto) tends to go up…
But you probably have two questions: What the are crypto ETNs, and why have they caused such a buzz in the crypto space?
In this guide, we will explain everything that you need to know about crypto ETNs and what they could mean for the future of crypto. We will also explain how you might be able to buy them as a UK investor.
Also read: Getting started with crypto as a UK investor
What are Crypto ETNs?
ETN stands for Exchange-Traded Note. It’s basically a mix between a loan and a stock.
You lend money to a bank or financial institution, and returns depend on an underlying asset (like Bitcoin). You can buy and sell ETNs on an exchange, just like a regular share.
Unlike bonds, ETNs don’t pay interest. Instead, you’re hoping the asset they’re linked to increases in value.
So with a crypto ETN, you’re tracking the price of crypto like Bitcoin or Ethereum, without ever having to deal with wallets or private keys.
If you want a fancy definition: “An Exchange Traded Note (ETN) is a type of debt security, similar to a bond, that is traded on an exchange like a stock. Unlike bonds, ETNs do not pay interest. Instead, they aim to track the performance of a specific market index or benchmark, and their value fluctuates based on that index’s performance. ETNs are issued by financial institutions, and investors essentially lend money to the issuer, hoping to profit from the index’s movement. “
In simple terms: An ETN (Exchange Traded Note) is kind of like a mix between a loan and a stock. You’re lending money to a bank, and instead of getting interest, the value of your investment goes up or down depending on what it’s linked to, like gold or a stock market index. You can buy and sell it on the stock market just like a share.
Why the FCA’s Proposal is Causing a Stir
We get it, ETNs are another way to buy crypto, without needing to directly buy from the world of blockchain.
But, why is this such great news for investors?
Well, there are a few reasons that the approval of crypto ETNs have made crypto enthusiasts happy 🙂
A sign of mass adoption?
When the FCA makes a big decision, other central authorities tend to follow suit.
Could Japan, for example, also consider the move?
‘Mass adoption’ is a term that refers to the global acceptance of crypto as a form of digital currency. The introduction of ETNs could bring us closer to this reality!
Easy trading
The potential introduction of crypto ETNs will make it easier for retail investors (like you and me!) to invest in crypto.
This is because you will be able to do it through a regular investment platform- keeping your crypto and your stocks all in one place!
Crypto in an ISA?
For now, you cannot put crypto in your ISA.
However, the introduction of crypto ETNs could (and we really exaggerate the ‘could’ here!) eventually make it possible to invest under an ISA.
And this means tax-free returns!
Why Have The Markets Reacted Positively?
The immediate reaction from investors? Excitement. More access usually equals bigger demand. And when sentiment shifts, we see:
-
Short-term crypto price bumps: A “regulatory greenlight” typically increases optimism, bringing in buyers from the sidelines.
-
Path to richer tools: If ETNs arrive with ETFs and ISA eligibility, more people get involved and that’s a good thing for long-term demand.
What do ETNs mean for the price of Bitcoin?
It will probably come as no surprise that the potential approval of UK crypto ETNs caused an uptick for the price of Bitcoin.
This is largely due to investor optimism (more people are optimistic about the future of Bitcoin so rush to add it to their portfolios).
The crypto world is hugely effected by investor emotions. So, when investors are happy, prices tend to go up.
What the experts say:
Don’t just take my word for it! Here is a summary of what industry experts are saying about the FCA’s proposal.
Hector McNeil (HANetf) says it’s “long overdue” and expects better competition, trading volume, and liquidity, which is good news!
Bradley Duke (Bitwise) highlights that ETNs give you regulated protection and reduce the risks linked to wallets or exchanges.
Diego Ballon Ossio (Clifford Chance) sees it as a milestone that “signals the UK is open to crypto,” though some regulatory fine-tuning is still needed.
How to Buy Crypto ETNs
If we’ve managed to get you excited about crypto ETNs, you might be wondering how you can get a slice of the action!
For now, the ban is still in place. The FCA is proposing to lift it and UK investors still cannot invest in crypto ETNs.
However, when the ban is eventually lifted, the process of investing in crypto ETNs will feel very similar to investing in other exchange-traded products.
Here’s a quick run down:
- Find an platform: The first step is to find an investment platform that offers crypto ETNs. We cannot say for sure what your options will be! But it is worth shopping around for one with the lowest fees.
- Sign up and connect a payment method: You will need to create an account with the investment platform (including going through KYC) and then connect a valid payment method.
- Choose an ETN: Do a bit of research to find an ETN that aligns with your strategy.
- Invest!: This part of the process will vary between platforms. Fill out the order form and click ‘buy’ (or the similar button).
Your crypto ETN will appear in your investment account, alognside any other investments that you have on that platform.
Final thoughts
The approval of UK crypto ETNs would certainly be positive for the crypto space and the FCA’s proposal has already caused investor optimism.
Something to remember: ETNs are still debt instruments, which means that you’re trusting an issuer, not holding crypto. That means credit risk comes into play alongside crypto’s own price swings.
If you’re thinking of dipping a toe in, keep it small (5% or less of your portfolio), as experts recommend. Once the consultation closes in July 2025 and final rules land, let’s reassess. Until then, it’s a good idea to stay on top of the latest updates.
If you’re keen to keep on top of the latest investing news why not sign up to our fortnightly MoneyMagpie Investing Newsletter? It’s free and you can unsubscribe at any time.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
Leave a Reply