Aug 7, 2025
There’s good news for UK investors. Set to take effect starting October 8, a new policy grants retail investors access to crypto exchange-traded notes (ETNs), a means of investing in cryptocurrency through traditional financial products.
It’s a win for anyone looking to add Bitcoin, Ethereum, or other cryptos to their portfolio in a regulated, familiar format. That said, crypto derivatives like futures, options, and perpetual contracts remain off-limits for UK retail investors, for now.
Why the regulators are embracing crypto ETPs
While much of the focus this year has been on corporate treasury strategies and direct crypto purchases, exchange-traded funds (ETFs) and other investment vehicles still hold the largest share of Bitcoin.
Currently, funds and exchange-traded products (ETPs) manage over $160 billion in assets (as shown in the chart below), far outpacing corporate and government holdings. The appeal lies in their ability to offer crypto exposure through trusted, regulated financial products, combining institutional-grade security, transparent holdings, and smooth integration with traditional brokerage platforms.
This growing popularity is exactly why global regulators are starting to reconsider retail bans on crypto exposure, a trend we forecasted in our 2025 market outlook, and one that’s now taking shape.
The UK isn’t alone in this shift. Europe has offered crypto ETPs for nearly seven years, while in the US, spot Bitcoin ETFs launched in 2024 and rapidly grew to manage around $150 billion in assets within their first year.
UK crypto retail market set for takeoff
The rollout of retail crypto ETNs in the UK will look different. Institutions have had access since 2024, so UK retail investors are starting from a different place. Still, the potential upside is huge. In the US, over 40% of crypto ETP inflows now come from retail investors, showing that regulated access drives strong demand.
If the UK reaches just a 1.3% (as shown in Figure 3) adoption rate of crypto ETNs among the wider population, matching the US, billions of dollars in new investments could flow in, putting the UK ahead of other countries still debating similar steps.
The groundwork is already laid: according to the Treasury, 12% of British adults have already engaged with crypto, and that number is expected to grow as regulated, investment-grade products become available.
Crypto regulation goes global
As outlined in our latest State of Crypto Report, the UK’s pivot is part of a broader global trend toward regulated crypto exposure:
- In Japan, SBI Holdings unveiled plans for exchange-traded products, including a gold-crypto ETF and a Bitcoin-XRP dual ETF upon regulatory approval.
- South Korea’s FSC is working toward the approval of a spot crypto ETF by the end of 2025.
The return of crypto ETNs to UK retail investors is more than just a policy update; it’s a shift in how digital assets fit into traditional financial markets. With Europe setting the stage, the US driving adoption, the UK now opening the doors for retail investors, and Asia picking up speed, 2025 is shaping up to be the year when access, clarity, and investment capital come together like never before.
This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not to grow as expected.Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors.This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.
.svg)
