Key Takeaways
What is a Bitcoin ETN?
An ETN is a debt instrument that tracks crypto prices, letting investors gain exposure without owning the actual coins.
What is the Bank of England doing about stablecoins?
It plans to allow exemptions to holding limits for firms and permit stablecoins as settlement assets in its Digital Securities Sandbox.
The United Kingdom is reopening the door for retail investors to access crypto products, as the Financial Conduct Authority (FCA) lifts its 2021 ban on Bitcoin [BTC] exchange-traded notes (ETNs).
Bitcoin UK: FCA lifts ban on ETNs for retail investors
Starting the 8th of October, retail investors in the UK can access ETNs linked to Bitcoin or Ethereum [ETH], provided they are listed on a recognized exchange such as the London Stock Exchange.
But, these products must comply with strict listing, disclosure, and distribution rules, offering regulated exposure without requiring direct crypto ownership.
For those unaware, an ETN is an unsecured debt instrument that tracks an asset’s price. While investors gain exposure to Bitcoin’s performance, they do not hold the asset itself.
Needless to say, the move has been welcomed by the crypto industry as noted by Susie Violet Ward, CEO of Bitcoin Policy UK, who said,
“Access matters, and lifting the ETN restriction is a welcome step in the right direction. What is important now is that the UK builds on this momentum.”
Bank of England puts limits on stablecoin
Meanwhile, the UK’s Bank of England is signaling a more flexible approach to digital assets. BoE plans to grant exemptions to proposed limits on stablecoin holdings.
According to Bloomberg, certain firms, including crypto exchanges that need to hold significant stablecoins for liquidity and settlement, may qualify for these waivers.
The Bank also plans to allow the use of stablecoins as settlement assets within its Digital Securities Sandbox, providing a controlled environment for testing blockchain-based issuance and trading.
The uncanny rise in stablecoin
These changes come as the U.S. GENIUS Act establishes clear rules for dollar-backed stablecoins, setting a competitive benchmark.
Meanwhile, a new contender has emerged on the international stage, and that is China.
Once known for strict crypto bans, the country is now re-entering the market through Hong Kong, with a Central Asia–based issuer, AnchorX, unveiling AxCNH, the world’s first stablecoin pegged to the offshore Chinese Yuan (CNH).
Therefore, as the stablecoin ecosystem evolves, the UK faces mounting pressure to adapt quickly or risk losing ground in a market poised for trillions in global payments.