The UK crypto market could grow by up to 20 per cent following the introduction of regulated crypto Exchange Traded Notes (ETNs) on Thursday (8th October), according to new research from investing and trading platform IG.
IG writes that ETNs are regulated investment products that track the price of an asset without requiring investors to hold it directly. The Financial Conduct Authority (FCA) recently announced plans to make crypto ETNs widely available to retail investors from October 8.
IG’s new research finds 30 per cent of UK adults would consider investing in crypto via ETNs. This represents a significant potential uplift from current levels of crypto ownership – 12 per cent, according to the FCA’s latest study, and 25 per cent according to IG’s new study. Interest is expected to be particularly strong among younger adults, with 50 per cent of 18-24-year-olds and 49 per cent of 25-34-year-olds expressing interest.
Among those likely to invest, the main appeal of crypto ETNs is their perceived safety and regulatory oversight, cited by 32 per cent. A further 19 per cent point to the ability to hold crypto within tax-efficient wrappers such as ISAs and SIPPs as a key advantage.
Support for including crypto within tax wrappers is strong, with 41 per cent backing its inclusion in ISAs (compared to 20 per cent opposed) and 37 per cent supporting its inclusion in pensions (versus 21 per cent opposed).
Michael Healy, UK Managing Director at IG, says: “Crypto ETNs represent a significant step forward for the UK market, opening access to millions of investors who have previously been cautious or excluded. The ability to hold crypto within familiar, tax-efficient vehicles like ISAs and pensions is a real milestone.
“That said, ETNs are just one part of the puzzle. To fully unlock crypto’s potential, the UK needs a proper regulatory framework – and it needs it fast, or we risk falling far behind global peers. It’s also crucial that the government considers allowing crypto ETFs, which are currently banned in the UK but offer greater flexibility and liquidity.
“With ETNs set to launch next month, we expect a surge in crypto adoption – especially among younger generations already comfortable with digital assets. This could mark the start of a new phase of mainstream crypto investing in the UK.”
Unlike ETFs, which allow investors to directly own underlying assets, ETNs are debt instruments that track the asset’s price, providing regulated access without the need for direct ownership. Although crypto ETFs are more commonly owned globally, they remain banned in the UK.
newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFexpress.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.
