CoinDesk
The UK's Financial Conduct Authority proposed letting UCITS funds and certain non-UCITS retail schemes (NURS) allocate up to 10% of their assets to cryptocurrency exchange-traded notes, in a quarterly consultation paper published this week. UCITS and NURS are the closest UK analogue to US mutual funds — regulated, open-ended vehicles that pool retail money into managed portfolios — and the cap is designed to let funds add crypto exposure without concentrating it.
The FCA framed the 10% limit as a risk-mitigation device, writing that the proposed ceiling would "mitigate the risk of significant impacts arising from crypto ETN exposure." It is the second step in a year-long easing: the FCA first opened retail access to crypto ETPs in October 2025, lifting a retail ban that had stood since 2021.
Why it matters
The UK has lagged the US and parts of the EU on mainstream crypto access, and the framing inside the consultation paper is defensive on that point — critics have argued for months that restrictive UK rules risk pushing activity to jurisdictions with cleaner regulatory paths. Letting retail-pooled vehicles hold crypto ETNs in a capped sleeve inside a familiar fund structure gives advisers a compliant way to add the asset class without asking clients to open a new account, custody crypto directly, or change providers. The 10% line is also high enough to be a real allocation, not a token gesture, while keeping most of a fund's risk profile anchored to traditional assets.
Market impact
Watch the consultation deadline and the next quarterly paper for the FCA's final framing — the cap percentage, eligible ETNs, and any concentration limits at the issuer level will determine how much of the UK retail pool can actually flow through. UK-listed crypto ETN issuers, including the wave that launched after the October 2025 retail opening, are the most direct read-through; the longer-term bid is the asset-allocation floor that appears once advisers can model crypto as a small sleeve inside an existing client portfolio rather than a standalone decision.
Frequently asked questions
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What did the FCA actually propose?
The FCA proposed letting UCITS funds and certain non-UCITS retail schemes (NURS) hold up to 10% of their assets in cryptocurrency exchange-traded notes, in a quarterly consultation paper. The 10% cap is framed as a risk-mitigation device.
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What are UCITS and NURS?
UCITS (Undertakings for Collective Investment in Transferable Securities) and NURS are the UK equivalents of US mutual funds — regulated, open-ended vehicles that pool retail money into managed portfolios.
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Is this the first time UK retail has had crypto ETN access?
No. The FCA first allowed retail investors to access crypto exchange-traded products in October 2025, lifting a retail ban that had been in place since 2021. The new proposal extends that access into pooled fund structures.
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Why is the 10% cap significant?
A 10% sleeve is high enough to be a real allocation, not a token gesture, while keeping most of a fund's risk profile anchored to traditional assets. It lets advisers add crypto exposure inside a familiar wrapper without asking clients to custody assets directly.
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What happens next?
The proposal sits inside a consultation paper, so the FCA will collect feedback before finalising. The next quarterly paper is where the cap percentage, eligible ETNs, and any issuer-level concentration limits get locked in — that will determine how much of the UK retail pool can actually flow through.
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