The Crypto ETN Fiasco: UK’s Retail Investors Dive Into the Madness!

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Well, well, well, look what we have here! The United Kingdom, in a shock twist that no one saw coming, has decided to unleash crypto exchange-traded notes (ETNs) to the masses – that’s right, no more “professional traders only” nonsense! Suddenly, retail investors are diving into the crypto world with their pocketbooks wide open. And guess what happens when you throw a bunch of people into a high-stakes game with too much money to spend? Yep, a good old-fashioned price war breaks out, as reported by the Financial Times.

The Financial Times, in their usual understated way, describes the situation as a “cut-throat battle,” with Bitcoin ETN issuers cutting their fees down to a jaw-dropping 0.05%. Meanwhile, others are charging a lovely 2.5% fee for the privilege of taking part in this carnival of crypto madness. Oh, the joy! 😅

Now, why all this chaos? Well, the Financial Conduct Authority (FCA) made the brilliant decision to lift the 2021 ban on retail access to crypto-linked funds, which went into action on October 8.

At the time of this earth-shattering policy change, Ian Taylor from CryptoUK declared, “We are delighted to see this reversal,” like they just won a gold medal in consumer risk management. What a way to celebrate, right? 😆

And what kind of sparkling gems are retail investors getting access to, you ask? Well, you’ve got the creme de la creme like 21Shares’ Core Bitcoin and Ethereum Core Staking ETPs, which now sport a snazzy 0.1% fee. Fancy! Fidelity’s Physical Bitcoin ETP, too, has lowered its fee to a modest 0.25%. And let’s not forget CoinShares’ Physical Staked Ethereum ETP, which has decided to be completely generous with zero management fees. No, really, zero. 🤑

Is the UK Getting Left Behind in the Crypto Race?

But wait, there’s more! This fee frenzy isn’t just about some crypto funds having a sale. Oh no, it’s part of a much bigger effort to pull the UK out of the crypto adoption slump it’s been in. Seems like the Brits are finally realizing that they’re falling behind in the race to be a crypto powerhouse.

One of the big points of contention? Stablecoins. Industry folks didn’t exactly love the Bank of England’s (BoE) proposal to impose strict corporate holding limits. So, naturally, they threw a tantrum, and now, the BoE is considering softening its stance. Because, of course, you can’t have a crypto party without some stability, right? 🧐

According to Bloomberg, the BoE is worried that the US is pulling ahead after passing the GENIUS Act, which is aimed at making the rules for stablecoin issuers crystal clear. Yes, the US… making crypto moves while the UK is still figuring out which foot to put forward.

Even BoE Governor Andrew Bailey has started to soften his rhetoric. No more talk of “private stablecoins threatening financial stability.” Instead, he’s now all about the innovation and how these fancy little things might actually play a role in the future. Funny how quickly opinions can change when the rest of the world is moving at lightning speed. 😆

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2025-10-30 19:58