UK-based Hargreaves Lansdown, the largest investment platform, now enables the purchase of ETNs for cryptocurrency exchanges, providing a means for eligible customers to be able to invest in Bitcoin and Ethereum without owning the actual cryptocurrency. This is a significant step for the crypto ETN UK industry since the FCA has revoked its ban on retail trading of crypto ETNs from October 2025.
Nine ETNs have been introduced via the Advanced Investing service by the company on September 3. They include ETNs that have been issued by large companies such as BlackRock’s iShares, WisdomTree, 21Shares, Invesco, CoinShares, and Bitwise. Charges on annual management fees are 0% to 0.35% across the range of products.
FCA Rule Change Opens the Door
This is due to the regulatory development that has taken place in the crypto ETN UK market. In January 2021, the FCA introduced the ban on selling, marketing, and distributing derivatives and ETNs based on unregulated cryptoassets to retail customers. But the regulator decided to remove the ban after consultation on the matter in 2025 and lifted it from October 8, 2025.
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As per the new regime, retail investors will have access to qualifying crypto ETNs if they are listed on the FCA’s Official List and admitted to trading on a UK Recognised Investment Exchange. The products are categorized as Restricted Mass Market Investments and require additional financial promotion and consumer protection measures from firms. For more insights on crypto regulations and market developments, readers can also visit yourcryptoupdates.
Hargreaves Lansdown was conservative with its crypto products in terms of launching any such products in the past due to the volatile nature of the crypto products and requirement of educating investors regarding their risks.
Who Can Access the Products?
Access is not guaranteed for all Hargreaves Lansdown customers. Firstly, investors need to have a legal domicile in the UK and own a Fund and Share Account or a Self-Invested Personal Pension (SIPP). In addition, investors will need to certify themselves as advanced investors, take an appropriateness test and undergo a mandatory cooling-off period for 24 hours before being allowed access to the offered products.
The restrictions arise due to the classification of the products by the FCA as high-risk, complex instruments. The FCA highlighted the importance of knowing that one can lose all their money as part of the risk. Another risk involved here is that the products do not have FSCS protection.
ISA Restrictions Remain an Issue
The limitation for the crypto ETN UK market is that Hargreaves Lansdown does not support such products in Stocks and Shares ISAs. According to the company, crypto ETNs can only be kept in eligible Fund and Share Accounts or SIPPs.
However, the introduction is important due to the platform’s management of more than £170 billion in assets for about two million customers. It could attract investor attention to crypto investment products in the absence of crypto exchanges’ utilization.
For the crypto ETN UK market, the launch of the product could mean that the investment platforms are now getting ready to offer regulated digital asset investments. The FCA is observing this trend and maintaining its prohibition for retail crypto derivatives.
The new product could contribute to further competition in the crypto ETN UK market and development of the sector. However, investors would have to take into consideration the following aspects: volatility, product structure, fees, counterparty risks and lack of FSCS protection.
FAQs
1. What is a crypto ETN?
A crypto ETN is an exchange traded note that mimics the performance of a cryptocurrency or a crypto-linked asset without holding the actual cryptocurrency.
2. Why is Hargreaves Lansdown’s launch important for the crypto ETN UK market?
It allows eligible customers of the UK’s biggest investment platform to trade Bitcoin and Ethereum ETNs that are regulated from their investment accounts.
3. Who is eligible to purchase crypto ETNs at Hargreaves Lansdown?
Customers that are domiciled in the UK and have met the platform’s requirements to invest in such products can trade the crypto ETNs.
4. Are crypto ETNs eligible for Stocks and Shares ISA?
Hargreaves Lansdown’s crypto ETNs are not eligible for Stocks and Shares ISAs at this time.
5. Are crypto ETNs protected by FSCS?
No. According to the FCA, the crypto ETNs are not covered by the Financial Services Compensation Scheme.
