According to ME News, on June 8 (UTC+8), the UK Financial Conduct Authority (FCA) proposed in its 52nd quarterly consultation paper to allow authorized investment funds—including UCITS funds and most non-UCITS retail funds—to allocate up to 10% of their assets to crypto exchange-traded notes (ETNs). The FCA stated that the 10% cap is intended to prevent funds from being reclassified as “restricted mass-market investment products,” thereby preserving their status as mainstream retail products. Qualified investor funds (available exclusively to professional and sophisticated investors) are exempt from this cap; long-term asset funds and non-UCITS retail funds operating as alternative investment funds are entirely excluded. The consultation period is five weeks, ending on July 13. Previously, in August 2025, the FCA lifted a four-year ban on retail investors purchasing crypto ETNs, prompting institutions such as 21Shares, Bitwise, WisdomTree, and BlackRock to list physically backed Bitcoin and Ethereum products on the London Stock Exchange. (Source: Foresight News)
UK FCA Proposes 10% Cap on Crypto ETN Allocation for Authorized Funds
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Summary
On-chain news reveals that the UK FCA has proposed a 10% cap on crypto ETN allocations for authorized funds in its latest consultation. The rule applies to UCITS and most retail funds to avoid reclassification. Qualified investor funds are exempt, while certain alternative funds are excluded. The consultation runs until July 13. Crypto exchange news highlights that 21Shares, Bitwise, WisdomTree, and BlackRock have listed Bitcoin and Ethereum ETNs on the London Stock Exchange following the lifting of the 2025 retail ban.
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