We have covered the reluctance of the UK’s financial regulator, the FCA, to allow retail investors access to cryptocurrencies for some time now. The industry has boomed across Europe with clear appetite for crypto ETPs but has been banned in the UK since January 2021.
Gill Wadsworth spoke to Jean-Marie Mognetti, CEO of CoinShares, this week, who says: “The primary benefit [of lifting the ban] is that it gives UK retail investors the choice as to whether or not they wish to invest in digital assets. Since the ban was introduced in January 2021, bitcoin and Ethereum have appreciated by 280 per cent and 250 per cent, respectively, investment gains that have been unavailable to UK retail investors. The repeal of the ban brings UK crypto investment policy in line with most other European countries and the US and permits UK retail investors access to this promising asset class.”
It will be interesting to see if there is genuine interest in investing in crypto in the UK. We reported on a study from the London Stock Exchange on the appetite for crypto ETNs on their exchange, which is the only one authorised by the FCA to launch the new retail products.
“Growth in the Crypto ETN space continues to accelerate, with a record EUR26 billion traded on European exchanges in 2024, an increase of more than 300 per cent year on year. So far in 2025, market volumes are on track to reach similar levels to last year’s record,” the exchange reported.
“LSE trading volumes in Crypto ETNs have picked up over recent months, especially during the Trump tariff volatility in April 2025. 2025 average daily volume traded (ADVT) on the LSE Order Book is GBP624k, up 173 per cent compared to 2024, and represents 0.59 per cent of European share of Crypto ETP trading.”
Sticking with UK institutions, The Investment Association, the UK fund management trade body, reports that ETFs are on the up. Current demand for ETFs is driven by younger, male and higher income investors, providing opportunities for growth within the wider investor community, the Association says.
However, a lack of knowledge about ETFs is holding back wider adoption, with almost half (49 per cent) of the wider investor base having little to no knowledge of the product. “There is a significant opportunity for the industry to help raise awareness of ETFs so that investors can make better informed decisions, and to reach a more diverse profile of investors, including women and the over 55s,” the Association says.
Beverly Chandler, Managing Editor
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