UK Retail Investors Unlock Crypto ETPs: Market Flows and Key Insights

As the Financial Conduct Authority lifts its ban on UK retail access to crypto exchange-traded notes, advisors must consider the benefits and risks of diversifying client portfolios with established cryptocurrencies.  

Investor demand for crypto exchange-traded products surged in the third quarter of 2025, with net inflows reaching EUR 972 million, a new quarterly high. Our Crypto ETPs in Europe report explores the impact of the FCA’s new rules and the risks and benefits of investing in crypto. 

This new regulation gives investors access to a budding asset class through highly regulated, easily accessible products. For a full look at the key trends driving investments in European crypto ETPs and insights into which providers and cryptocurrencies are available in the market, download the full report.  

Bitcoin and ether are the largest cryptocurrencies by market cap. Bitcoin is the oldest and most prominent cryptocurrency, created in 2009 as a decentralized alternative to conventional currencies. It’s a completely virtual asset that uses a blockchain to register transactions cryptographically, linking strings of “blocks” together in a way that cannot be altered after being recorded.  

Many other types of cryptocurrencies exist under the umbrella term of “altcoins.” Thousands of active cryptoassets exist, and as of Sept. 30, the total crypto market was valued at $3.93 trillion, based on data from CoinMarketCap.

European ETPs can be classified into four categories: those offering exposure to bitcoin, ether, alternative cryptocurrencies, or diversified basket products. Single-crypto exposure products, excluding those targeting bitcoin or ether, are classified as alternatives.Products with multi-crypto exposure are considered basket products.  

In the UK, there are currently five Recognized Investment Exchanges : ICE Futures Europe, London Stock Exchange, London Metal Exchange, Aquis Stock Exchange, and Cboe Europe. 

The FCA requires crypto ETNs to meet the following criteria to be admitted for trading on an RIE: 

• The underlying asset must be either bitcoin or ether. 

• Products must be physically backed by the underlying cryptocurrency. 

• Cryptoassets must be held in cold storage (that is, offline) or an equivalent secure arrangement and must be safeguarded by one or more regulated custodians. 

Flows into crypto ETPs are on course to hit a new annual record high in 2025. Flows totaled EUR 972.3 million in the third quarter of 2025, with the bulk of the demand in September. Plus, flows so far in 2025 amounted to EUR 1.7 billion. 

The size of the crypto ETP market in Europe has more than doubled in the past two years. Assets amounted to EUR 19.3 billion at the close of the third quarter, up from EUR 16.7 billion in 2024 and EUR 7.9 billion in 2023. 

Bitcoin’s prominence is clear in Europe’s crypto ETP landscape. Single-bitcoin exposure accounts for about half of crypto ETPs’ assets under management, despite the vast majority of products falling under the alternative cryptocurrencies grouping. 

In terms of market share, CoinShares, 21Shares, and WisdomTree led providers of Europe-domiciled crypto ETPs by assets under management as of the end of the third quarter of 2025. 

Valour offers the most crypto ETPs, with 71 products, followed by 21Shares with 48. The largest funds by assets include CoinShares Physical Bitcoin, 21Shares Solana Staking ETP, and WisdomTree Physical Bitcoin. 

The majority of crypto ETPs were launched in the past five years, with 2024 being the strongest year for new products. In 2023, there was a notable drop in launches and the highest number of closures, at 21 crypto ETP closures.  

For the year to date, 47 products have launched in 2025. However, 2024’s 68 product launches still lead.

Despite increasing interest in cryptocurrencies as an investment, there remains extreme volatility in digital assets like bitcoin and ether, making it even more important to understand the risks before making an investment decision.  

Over the 10-year trailing period ended August 2025, bitcoin and ether delivered impressive annualized returns. But, over this same period, bitcoin and ether’s volatility, as measured by standard deviation, was significantly higher compared with traditional assets. 

The average annual fee for a digital-asset ETP is 1.64%, though there are noticeable differences in price between product groups. Alternative cryptocurrency ETPs carry the highest fees on average, while bitcoin and ether ETPs have the lowest fees. 

Even modest allocations to cryptocurrency can significantly amplify a portfolio’s overall risk and return profile.

As previously noted, cryptocurrencies have had extreme volatility and drawdown risk while also posting returns sufficiently high enough to compensate for this. However, it’s unclear whether this pattern will continue.  

Unlike traditional assets, such as equities or bonds, estimating the fair value of cryptocurrency is extremely difficult. For these reasons, we recommend allocating 5% or less overall to crypto.

In terms of an appropriate holding period for cryptocurrency, our Role in Portfolio framework suggests at least 10 years. This guideline is based on an analysis of historical loss frequency over rolling periods up from one to 10 years, while also considering the typical recovery time after a drawdown. 

The HRMC has also explicitly confirmed that crypto ETNs will be eligible for inclusion in tax-advantaged Individual Savings Accounts, with regulatory guidance from HMRC, the UK’s tax payments and customs authority. 

If investors choose to include crypto ETNs in a tax-free account, like an ISA, it could be very advantageous, as these holdings would be exempt from capital gains and income tax with no reporting required. Outside a tax-free account, investors must self-report any capital gains or income as those are subject to tax. 

After 8 October 2025, UK retail investors will be able to access crypto ETNs, with several safeguards and regulations in place to protect this investor segment. Although there are already several ways retail investors can access crypto in the UK, crypto ETNs that fulfill FCA requirements offer investors ease of access, as well as robust regulatory oversight. 

Under new FCA rules, retail investors will have access to ETNs tracking the largest cryptocurrencies by market cap—bitcoin and ether—as well as products that stake ether, enabling passive income opportunities. 

Due largely in part to the asset class’s extreme volatility, uncertain future returns, and difficulty in valuation, our research suggests cryptocurrency should make up only a small part of a diversified portfolio. 

For a more in-depth look at what lifting of the FCA’s ban on retail access to cryptocurrency ETNs means for professional investors, download the full report.