UK Regulator Proposes 10% Cap on Crypto ETN Exposure for Retail Funds

The Financial Conduct Authority proposed allowing certain retail investment funds to hold up to 10% of their assets in cryptocurrency exchange-traded notes. The proposal covers UCITS schemes and some non-UCITS retail schemes, known as NURS. UCITS stands for Undertakings for Collective Investment in Transferable Securities.

Both structures are regulated, open-ended vehicles that pool money from retail investors into managed portfolios, similar to mutual funds in the United States. The FCA made the suggestion in its latest quarterly consultation paper. The regulator wrote that the 10% limit would mitigate the risk of significant impacts arising from crypto ETN exposure.

The FCA first allowed retail investors to access crypto ETNs in October 2025. That step lifted a ban on retail access that had been in place since 2021. K.

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