The U.K. Financial Conduct Authority (FCA) has proposed allowing certain retail investment funds to allocate up to 10% of their assets to cryptocurrency exchange-traded notes (ETNs).
In its latest quarterly consultation paper, the regulator suggested that UCITS funds and some non-UCITS retail schemes (NURS) be permitted to invest in crypto ETNs, subject to the proposed exposure cap.
UCITS and NURS are regulated, open-ended investment vehicles that pool money from retail investors into managed portfolios, similar in function to mutual funds in the United States.
“Our proposed 10% limit for UCITS and NURS would also mitigate the risk of significant impacts arising from crypto ETN exposure,” the FCA said.
The proposal represents another step toward broader acceptance of crypto exchange-traded products in the U.K. under the ETN structure. Retail investors were first allowed to access these products in October 2025, when the FCA lifted a ban that had been in place since 2021.
Investment products that provide exposure to cryptocurrencies without requiring investors to buy or custody the underlying assets have played a growing role in mainstream crypto adoption. Some commentators have criticized past U.K. regulatory restrictions, arguing they could leave the country at a competitive disadvantage compared with other major financial markets.