The U.Okay.’s monetary regulator, the Monetary Conduct Authority (FCA), proposed permitting sure retail funding funds to carry as much as 10% of their belongings in cryptocurrency exchange-traded notes (ETNs).
The monetary regulator made the suggestion for UCITS (“Undertakings for Collective Funding in Transferable Securities”) schemes and a few non-UCITS retail schemes (NURS) to put money into crypto ETNs in its newest quarterly session paper.
UCITS and NURS are much like mutual funds within the U.S. in that they’re regulated, open-ended constructions that pool cash from retail buyers into managed portfolios.
“Our proposed 10% restrict for UCITS and NURS would additionally mitigate the danger of great impacts arising from crypto ETN publicity,” the FCA wrote.
The FCA’s proposal marks one other step on the highway to wider acceptance of crypto exchange-traded merchandise (ETPs) within the U.Okay. beneath the ETN banner. The regulator first allowed retail buyers to entry such funds in October 2025, lifting a ban that had been in place since 2021.
Funding automobiles that permit customers to realize publicity to cryptocurrency with out having to purchase and custody the belongings themselves have been on the forefront of mainstream adoption of crypto for a number of years. The regulatory hurdles to their wider use within the U.Okay. have drawn criticism from commentators who say it dangers putting the nation at a drawback in comparison with its friends.