UK financial regulator moves to allow mutual funds 10% exposure to crypto ETNs
Analysis
Price Impact
MedThis news allows mutual funds in the uk to allocate up to 10% of their assets to crypto etns, which could increase demand for cryptocurrencies. however, the 10% limit and the fact that it's etns (not direct crypto holdings) somewhat temper the immediate impact.
Trustworthiness
HighPrice Direction
BullishIncreased accessibility for traditional investment vehicles to gain exposure to crypto can lead to new inflows of capital, potentially driving prices up, especially for the underlying assets referenced by the etns.
Time Effect
LongThis is a regulatory change that will likely take time to be fully implemented and for mutual funds to adjust their portfolios. the impact will be gradual as funds assess and decide to allocate capital over the coming months and years.
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Article Content:
Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email UK financial regulator moves to allow mutual funds 10% exposure to crypto ETNs The Financial Conduct Authority proposed allowing some investment schemes to add exposure to crypto exchange-traded notes. By Jamie Crawley | Edited by Sheldon Reback Jun 9, 2026, 3:39 p.m. 1 min read Make preferred on (FCA) What to know : The U.K.'s Financial Conduct Authority (FCA) proposed allowing certain retail investment funds to hold up to 10% of their assets in cryptocurrency exchange-traded notes. UCITS and NURS could be described as U.K. equivalents of mutual funds in that they are regulated, open-ended structures that pool money from retail investors into managed portfolios. The regulatory hurdles to wider access to crypto ETNs has drawn criticism from commentators who say it risks placing the U.K. at a disadvantage to its peers. The U.K.'s financial regulator, the Financial Conduct Authority (FCA), proposed allowing certain retail investment funds to hold up to 10% of their assets in cryptocurrency exchange-traded notes (ETNs). The financial regulator made the suggestion for UCITS ("Undertakings for Collective Investment in Transferable Securities") schemes and some non-UCITS retail schemes (NURS) to invest in crypto ETNs in its latest quarterly consultation paper . UCITS and NURS are similar to mutual funds in the U.S. in that they are regulated, open-ended structures that pool money from retail investors into managed portfolios. "Our proposed 10% limit for UCITS and NURS would also mitigate the risk of significant impacts arising from crypto ETN exposure," the FCA wrote. The FCA's proposal marks another step on the road to wider acceptance of crypto exchange-traded products (ETPs) in the U.K. under the ETN banner. The regulator first allowed retail investors to access such funds in October 2025 , lifting a ban that had been in place since 2021. Investment vehicles that allow users to gain exposure to cryptocurrency without having to buy and custody the assets themselves have been at the forefront of mainstream adoption of crypto for several years. The regulatory hurdles to their wider use in the U.K. have drawn criticism from commentators who say it risks placing the country at a disadvantage compared to its peers. UK More For You Sam Bankman-Fried officially asks Trump for a presidential pardon By Helene Braun | Edited by Nikhilesh De 23 hours ago The fallen crypto mogul serving a 25-year sentence filed a clemency petition, betting on Donald Trump's history of crypto pardons even though the president had told him not to count on one. What to know : Sam Bankman-Fried, the imprisoned founder of the collapsed crypto exchange FTX, formally applied for a pardon from President Donald Trump as he serves a 25-year sentence for fraud and conspiracy. The clemency petition is listed as pending with the Justice Department’s Office of the Pardon Attorney, while he simultaneously pursues... Read full story Latest Crypto News 5 corruption gaps Congress must close in the Clarity Act 10 minutes ago Trad.Fi, W3 target $650 million in onchain private credit using AI evaluation 37 minutes ago Ethena lands Janus Henderson backing as asset manager invests in ENA, eyes USDe distribution 45 minutes ago Come back after the summer, says one analyst on crypto markets 46 minutes ago A16z, Paradigm lead $175 million bet to move global credit markets onchain 1 hour ago CoinDesk 20 performance update: AAVE Drops 2.6% as all constituents trade lower 2 hours ago Top Stories Live updates: bitcoin drifts back to $61,000, putting damper on hope for two straight up days 2 hours ago Humanity's $36 million exploit tied to compromised laptop hosting a 'multisig' wallet 3 hours ago Bitcoin's bounce isn't a bullish revival, with anything from $68,000 to $80,000 seen as a marker 4 hours ago Humanity Protocol token crashes more than 80% after a $32 million private-key hack 10 hours ago Forehead tattoos and alcohol dares: Inside the dark underbelly of crypto's memecoin craze 16 hours ago USDT's flashing a golden cross and that may be bad news for bitcoin 6 hours ago