Overview
- The Financial Conduct Authority published the measure in its 52nd quarterly consultation on Tuesday, June 9, 2026, and opened a five-week comment period that closes on July 13.
- Under the proposal, UCITS and most non-UCITS retail schemes could hold up to 10 percent of their assets in listed crypto exchange-traded notes, while qualified investor schemes would face no cap.
- The FCA would keep direct cryptocurrency holdings banned for authorised funds and limit permitted exposure to ETNs listed on UK-recognised exchanges and eligible EU or other approved markets.
- Fund managers must show ETN positions match a fund’s disclosed objectives and risk profile and must disclose any crypto exposure that is more than genuinely minimal.
- The move builds on the 2025 reopening of the UK retail ETN market and April 2026 tax changes for IF ISAs and could broaden retail access to crypto while narrowing custody and operational risks compared with direct token ownership.