UK to drive more Bitcoin and Ethereum demand

UK retail investors will soon be able to access crypto via regulated ETNs, starting with Bitcoin and Ethereum, marking a turning point for mainstream adoption and market growth.

This month marks a turning point for UK markets: retail investors will gain access to crypto through Exchange-Traded Notes (ETNs), starting with Bitcoin and Ethereum, in a format as familiar as ETFs, pending final regulatory approval

Back in January 2021, the Financial Conduct Authority (FCA) moved to restrict retail access to crypto derivatives, aiming to curb risky leveraged trading. Crypto ETNs were unfortunately swept up in that ban due to their classification as derivatives, even though they are structured very differently, designed as a simpler, more transparent way to invest in crypto. The concern at the time was less about ETNs themselves and more about retail investors taking on risks they couldn’t properly assess.

Four years on, that stance has shifted. The FCA now argues that the market has matured: products are better understood, investors are more informed, and infrastructure is tested through multiple cycles

This decision reflects a cautious but deliberate journey. Since 2021, the UK has steadily built a framework to support a more resilient digital asset market, from tightening oversight to approving institutional access, and now moving towards retail. Step by step, regulation has caught up.

Now, with the retail greenlight in sight, the UK is finally catching up with Europe and the US. From the sidelines to the pitch, this is the moment everyday investors will be able to access crypto in the same way they access equities, bonds, or gold — through trusted platforms and under a regulated umbrella.

Appetite meets opportunity

The UK may be late to the party, but it’s arriving at a moment when appetite for crypto exposure is strong and the infrastructure to support it is already in place. Nearly one in four Britons now own or have interacted with crypto, up from 18% in 2024⁽¹⁾, indicating a clear increase in retail familiarity. The Treasury has reinforced this trajectory, setting out its ambition to position the UK as a global crypto hub.

The demand story is equally compelling. In the US, spot Bitcoin and Ethereum ETFs now account for around 1.38% of the total ETF market. If the UK reached a similar share, inflows could approach £15–20 billion. That said, the comparison is only a proxy: the US ETF market is vast and attracts global capital, including from UK investors themselves. For that reason, penetration in the UK’s domestic ETP market could prove even higher. Since professional-only trading opened in London just over a year ago, more than £250 billion in volumes have already been recorded, and in the US, retail investors account for nearly half of all ETF inflows. If a similar pattern emerges here, the arrival of retail could be a powerful new driver of demand.

A domestic growth engine

There is also a wider economic angle. The UK has struggled to reignite growth, with GDP forecasts cut to just 1.1% for 2025. Against this backdrop, crypto matters: the domestic industry generated £248 million in revenue in 2024, with forecasts to nearly double within five years. Up until now, much of that activity has taken place offshore, with UK investors chasing exposure through foreign exchanges or decentralised platforms. 

With regulated crypto ETNs available on-shore, the UK has a chance to internalise that demand, capturing revenues, tax receipts, and trading activity within London, Europe’s financial capital. For policymakers, this is more than financial innovation: it is an opportunity to strengthen the UK’s role in global markets, anchor capital flows on-shore, and capture a share of the fastest-growing sector in finance.

For a country searching for engines of growth, crypto represents not only financial innovation but also a meaningful contributor to the broader economy.

What’s next?

Taken together, the picture is clear: a population already familiar with crypto, a regulatory framework that has matured step by step, and proven demand dynamics from abroad. The stage is set for significant inflows into crypto ETNs.

The next step is understanding what these products are and why crypto ETNs have emerged as the preferred gateway into digital assets for traditional investors. Our ETN Guide will be released soon. Stay tuned!