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#UKFCAProposesRetailFunds10PctCryptoETNs Here’s how the proposal breaks down:
- 10% Limit: The cap covers UCITS (Undertakings for Collective Investment in Transferable Securities) and most non-UCITS retail funds. The FCA says this limit keeps things in check, so these funds don’t end up classified as high-risk investments.
- Consultation Window: Right now, the FCA’s asking for feedback on the plan. You’ve got until July 13, 2026. Nothing’s set in stone yet.
- Who Can Invest: Funds geared toward professional investors can go beyond 10%, but long-term asset funds and some alternative investment funds can’t hold crypto ETNs at all.
It’s worth noting what the FCA isn’t allowing. Retail funds won’t be able to own cryptocurrencies directly.
What’s an ETN? In short, it’s a debt security you can trade on the stock exchange, designed to follow the price of something like Bitcoin. For funds, ETNs offer crypto exposure using traditional securities systems—no need to worry about direct custody or keeping track of private keys. The FCA says it’ll rethink the direct crypto ban once it sees how the UK’s upcoming crypto regulations shake out.#UK100