Uk allows up to 10 percent crypto etn in funds

The UK’s Financial Conduct Authority (FCA) proposed allowing investment funds to allocate up to 10% of assets to crypto exchange-traded notes (ETNs), expanding regulated indirect access to digital assets. The consultation is open until July 13 and applies to qualified portfolio managers, provided crypto ETNs fit fund objectives and risk profiles. The move would let funds buy ETNs listed on recognized UK exchanges, and potentially qualifying products on approved EU and global exchanges. Certain retail-focused alternative funds, including long-term asset funds and non-UCITS retail schemes, are excluded. The proposal follows earlier UK easing on crypto ETNs, including the FCA’s 2025 retail access reopening and subsequent availability in Innovative Finance ISA accounts. Market impact is broadly positive for crypto adoption and the regulated product ecosystem, especially for Bitcoin and Ether-linked vehicles, while reinforcing the UK’s gradual integration of crypto into mainstream portfolio management.