Catenaa, Wednesday, November 05, 2025-The UK’s cryptocurrency exchange-traded note (ETN) market reopened to retail investors on October 8, triggering intense competition and slashed fees as low as 0.05% for bitcoin-linked products.
The Financial Conduct Authority lifted its four-year ban, allowing retail investors to buy London-listed crypto ETNs within tax-free accounts, including stocks-and-shares ISAs. Products will also qualify for the Innovative Finance ISA from April 6 next year.
Leading issuers quickly cut charges to attract investors. Bitwise reduced its Core Bitcoin ETP fee from 0.2% to 0.05%, undercutting 21Shares’ 0.1% reduction for Bitcoin and Ethereum ETPs.
Fidelity lowered its Physical Bitcoin ETP to 0.25%, while Invesco trimmed fees to 0.1% until year-end. BlackRock joined with a temporary discount on its iShares Bitcoin ETP.
CoinShares maintains zero fees on its Physical Staked Ethereum ETP, offsetting costs via staking rewards.
Trading volumes surged after retail access resumed. Bitcoin ETNs averaged $7.2 million daily on the London Stock Exchange, up from $2.1 million earlier in October, while ether ETNs jumped from $1.9 million to $4.4 million. WisdomTree and iShares products recorded the highest turnover.
The FCA cautioned firms against offering incentives and stressed investor appropriateness checks. Crypto ETNs remain high-risk instruments not covered by the Financial Services Compensation Scheme.
Some brokers, including Hargreaves Lansdown and AJ Bell, have yet to offer crypto ETNs, though uptake among younger investors is strong.
The reopening marks a turning point for the UK crypto sector, expanding retail access and driving competition, while analysts expect the fee war to enhance market diversity and lower costs for investors.
