UK FCA Proposes Lifting Ban on Retail Investors Buying Bitcoin Exchange-Traded Products

The UK’s Financial Conduct Authority (FCA) has proposed a significant regulatory shift by considering the removal of the ban on retail investors purchasing cryptocurrency exchange-traded products (ETPs). This move aims to bolster the UK’s market competitiveness amid the growing momentum of the US crypto sector. Previously, the FCA permitted trading of crypto-linked exchange-traded notes, including those tied to Bitcoin and Ethereum, exclusively for professional investors on platforms such as the London Stock Exchange. The proposed amendment would extend access to retail investors, provided these products are offered on FCA-authorized trading venues. This development reflects the regulator’s intent to balance investor protection with market innovation, potentially broadening retail participation in digital asset investment while maintaining stringent oversight standards.