After years of limiting access to professional traders, the UK Financial Conduct Authority (FCA) has finally given the green light for everyday investors to buy crypto exchange-traded notes (ETNs), igniting one of the fiercest fee battles the market has ever seen.
Britain’s Crypto Reversal
Until this month, UK retail investors were barred from crypto-linked exchange products. That changed on October 8, when the FCA scrapped its 2021 prohibition, signaling a dramatic policy U-turn after years of caution. The regulator’s reversal now allows households to gain exposure to Bitcoin and Ethereum through regulated exchange products for the first time.
The change is more than symbolic. It places London in the company of other global financial centers racing to define how digital assets fit into mainstream finance. For issuers, it’s a signal to move fast – and compete hard.
The Race to Zero
Within days of the ruling, issuers began slashing fees in a desperate bid to win retail investors’ attention. The Financial Times described the atmosphere as a “cut-throat battle”:
- •21Shares trimmed fees on its Bitcoin and Ethereum products to 0.1%,
- •Fidelity lowered its Physical Bitcoin ETP to 0.25%, and
- •CoinShares went a step further – removing its management fee altogether on its Staked Ethereum ETP.
Some ETNs now cost as little as 0.05%, undercutting traditional ETF pricing and forcing legacy issuers charging up to 2.5% to rethink their models.
This dramatic repricing isn’t just a marketing tactic – it’s a signal that crypto ETNs are entering a commodity phase, where margins evaporate and brand trust, liquidity, and security become the differentiators.
Rebuilding Trust in Regulation
For the FCA, the policy shift is also a reputational pivot. Having been criticized for “overprotectionism” since its 2021 ban, the regulator is now trying to strike a middle ground – protecting consumers without locking them out of a maturing asset class.
Ian Taylor, board adviser at CryptoUK, said the new approach shows “progress toward proportionate regulation.” The FCA’s recently published roadmap outlines a framework that integrates tokenization, stablecoins, and digital settlements into the UK’s financial system – a vision designed to reassert London’s relevance in the race for crypto credibility.
Catching Up in a Global Race
The timing reflects growing anxiety that Britain risks falling behind. The United States has accelerated policy clarity with the GENIUS Act, which provides rules for stablecoin issuers, while the European Union’s MiCA regulation is already in motion.
Even the Bank of England is softening its once-hawkish stance. Governor Andrew Bailey, who once warned that private stablecoins posed “systemic risks,” now speaks of their “potential for innovation.” According to Bloomberg, the central bank is reconsidering strict limits on stablecoin holdings after industry feedback suggested they could stifle competitiveness.
A Market Reawakening
For investors, the combination of regulatory clarity and collapsing fees could make the UK one of the most accessible – and cost-effective – crypto markets in Europe. With major asset managers like Fidelity, 21Shares, and CoinShares leading the charge, the stage is set for an aggressive expansion of listed digital asset products.
If London can sustain the momentum, this may mark the beginning of its crypto finance comeback – a rare convergence of regulatory pragmatism, market competition, and investor demand that could once again make the UK a serious player in the digital asset arena.