Key Takeaways
What is a Bitcoin ETN?
An ETN is a debt instrument that tracks cryptocurrency prices, allowing investors to gain exposure without owning the actual coins.
What is the Bank of England doing about stablecoins?
It plans to grant exemptions to corporate holding limits and allow stablecoins as settlement assets in its Digital Securities Sandbox.
The UK reopens the door for retail investors to access crypto products as the Financial Conduct Authority (FCA) lifts its 2021 ban on Bitcoin [BTC] exchange-traded notes (ETNs).
Bitcoin UK: FCA lifts ban on ETNs for retail investors
From October 8, private investors in Great Britain can do this access ETNs linked to Bitcoin or Ethereum [ETH]provided they are listed on a recognized stock exchange such as the London Stock Exchange.
But these products must adhere to strict listing, disclosure and distribution rules, and provide regulated exposure without requiring direct crypto ownership.
For those who don’t know, an ETN is an unsecured debt instrument that tracks the price of an asset. While investors gain exposure to Bitcoin’s performance, they do not own the asset itself.
Needless to say, the move was welcomed by the crypto industry, as noted by Susie Violet Ward, CEO of Bitcoin Policy UK, who said:
“Access matters, and lifting the ETN restriction is a welcome step in the right direction. What is important now is that Britain builds on this momentum.”
Bank of England sets limits on stablecoin
Meanwhile, Britain’s Bank of England is signaling a more flexible approach to digital assets. The BoE plans to grant exemptions to the proposed limits for holding stablecoins.
According to Bloombergcertain companies, including crypto exchanges that are required to hold significant stablecoins for liquidity and settlement, may qualify for these waivers.
The Bank also plans to allow the use of stablecoins as settlement assets within its Digital Securities Sandbox, providing a controlled environment for testing blockchain-based issuance and trading.
The uncanny rise of stablecoin
These changes come as the US GENIUS Act sets clear rules for dollar-backed stablecoins, establishing a competitive benchmark.
Meanwhile, a new competitor has emerged on the international stage, and that is China.
Once known for its strict crypto bans, the country is now re-entering the market via Hong Kong, with a Central Asia-based issuer, AnchorX, unveiling AxCNH, the world’s first stablecoin pegged to the offshore Chinese Yuan (CNH).
As the stablecoin ecosystem evolves, Britain therefore faces increasing pressure to adapt quickly or risk losing ground in a market primed for trillions in global payments.