UK FCA Proposes Allowing Retail Funds to Allocate Up to 10% to Crypto ETNs

The UK Financial Conduct Authority had effectively restricted authorized funds from holding crypto-related products because of concerns about crypto-asset volatility and market integrity. Since October 2025, retail investors have been allowed to buy certain crypto ETNs listed on regulated exchanges. Extending access to professionally managed retail funds is intended to meet investor demand and narrow the regulatory gap between retail and institutional investors.

The FCA issued consultation paper CP26/17 on June 5, 2026, proposing that UK UCITS and most non-UCITS retail schemes could invest up to 10% of their assets in crypto ETNs, while remaining barred from holding crypto assets directly. Qualified Investor Schemes would face no cap, while Long-Term Asset Funds and some alternative investment funds would be excluded under the proposal. The consultation closed on July 13.