The UK Financial Conduct Authority (FCA) has officially approved CoinShares Digital Securities’ prospectus for its Physical Staked Ethereum (ETHE) and Physical Bitcoin (BTC) Exchange Traded Notes (ETNs), allowing retail investors to trade them in the United Kingdom. The approval, finalized on October 31, 2025, marks a pivotal step in the UK’s evolving stance on regulated crypto investment products.
The decision follows the FCA’s earlier move to lift its ban on retail access to crypto ETNs, a restriction that had been in place since 2021. The policy reversal, effective October 8, 2025 — reopened the market to individual investors, signaling a broader shift toward controlled integration of digital assets within the UK’s regulatory perimeter.
CoinShares Launches 0% Fee Ethereum ETN Amid Fee War
CoinShares’ newly approved Ethereum ETN, which carries a 0% management fee, is currently the cheapest product of its kind in Europe. The offering is designed to give investors direct exposure to staked Ethereum, providing yield through staking rewards while maintaining daily liquidity.
The Bitcoin ETN, meanwhile, provides physically backed exposure to BTC held in secure custody. Both instruments will be listed on regulated exchanges such as the London Stock Exchange, giving UK investors a compliant avenue for direct crypto market participation.
The move has intensified competition among European issuers, many of whom are now cutting fees to attract retail flows. With the UK reopening its retail ETN market, industry observers expect a surge in new listings and growing rivalry between providers like CoinShares, WisdomTree, and 21Shares.
ETNs Offer Regulated Access, But Without FSCS Protection
While the FCA’s approval allows these ETNs to be traded on mainstream platforms, investors are reminded that ETNs are debt instruments, not funds or deposit products. As such, they do not qualify for protection under the Financial Services Compensation Scheme (FSCS).
However, the regulatory framework does require full transparency, audited reserves, and detailed prospectus disclosures, all measures intended to enhance market integrity and investor confidence after years of cautious oversight.
A Landmark Moment for UK Crypto Integration
The FCA’s decision positions the UK closer to its European peers, where regulated crypto ETNs have long been available to retail investors. By endorsing CoinShares’ Bitcoin and Ethereum ETNs, the regulator is signaling that crypto exposure within a structured, transparent framework is now acceptable for the public market.
Industry experts say the move could spark renewed institutional interest as well, bridging the gap between retail and professional access to digital assets.
As CoinShares CEO Jean-Marie Mognetti noted in prior statements, the company’s goal is to “make digital assets accessible through trusted, regulated products”, and with FCA approval secured, that mission has reached a new milestone in the UK.
