UK Crypto ETN Market Turns Fierce After Retail Access Restored — Issuers Slash Fees to 0.05%

A fierce price war has erupted in the UK’s cryptocurrency exchange-traded note (ETN) market after regulators reopened access to retail investors for the first time in over four ￰1￱ move has triggered a wave of fee cuts from leading issuers, driving costs for bitcoin-linked products down to as little as 0.05%, levels even lower than most traditional equity and bond ￰2￱ Financial Conduct Authority (FCA) lifted its ban on retail investment in crypto ETNs on October 8 , marking a major policy reversal that reflects the regulator’s evolving stance on digital ￰3￱ UK FCA will allow retail investors to access crypto ETNs starting Oct 8—reversing a 4+ year ban. #FCA #ETNs ￰0￱ — ￰4￱ (@cryptonews) August 1, 2025 Retail investors can now buy and hold London-listed crypto ETNs, which track the price of cryptocurrencies such as bitcoin and ether, within tax-free accounts like stocks-and-shares ISAs for the current tax ￰5￱ April 6 next year, these products will also qualify for the Innovative Finance ￰6￱ decision immediately sparked intense competition among ￰7￱ Wins the Fee War After the FCA Opens the Door to Retail Crypto ETNs?

Bitwise, one of the first to react, slashed the annual fee for its Core Bitcoin ETP from 0.2% to 0.05%, effective for six months “and continuing until further notice.” The cut undercut 21Shares, which responded by reducing fees for its Core Bitcoin and Ethereum Core Staking ETPs to 0.1%. Fidelity soon followed, lowering charges on its Physical Bitcoin ETP to 0.25%, while Invesco trimmed its equivalent product to 0.1% until the end of 2025. BlackRock, which dominates the ￰8￱ ETF market through its $92 billion iShares Bitcoin Trust, entered the UK race by listing its European iShares Bitcoin ETP in ￰9￱ firm offered a temporary discount, reducing fees from 0.25% to 0.15% until January.

Meanwhile, CoinShares continues to lead the ether segment with its Physical Staked Ethereum ETP, the only exchange-traded product in Europe with zero management ￰10￱ offsets costs using staking rewards generated from locked ￰11￱ London’s Crypto ETN Boom Mirror the ￰12￱ Frenzy? The new fee war mirrors the aggressive competition seen in the United States when crypto ETFs launched in early ￰13￱ say the cuts could make it cheaper for investors to gain bitcoin exposure through regulated funds than through most traditional investment ￰14￱ crypto ETNs previously available only to professionals still charge as much as 2.5% annually, highlighting the growing divide between older products and new, low-cost ￰15￱ activity surged immediately after retail access ￰16￱ to data from Bitwise, average daily trading volumes for Bitcoin ETNs on the London Stock Exchange jumped to $7.2 million from $2.1 million earlier in October, when only professional investors were ￰17￱ ETNs saw similar momentum, rising from $1.9 million to $4.4 ￰18￱ data shows that WisdomTree’s Physical Bitcoin and Ethereum ETNs have seen the highest turnover since the relaunch, followed closely by iShares products.

“The surge in activity reiterates the exceptional level of appetite for exposure to these assets,” said Russell Barlow, chief executive of ￰19￱ analysts expect competition to further expand product diversity and reduce costs for investors as more issuers enter the UK ￰20￱ Warns Issuers on Incentives as Younger Investors Drive Interest Still, the FCA has urged ￰21￱ a statement this week, the regulator warned issuers not to offer incentives to attract investors and to carry out strict appropriateness assessments.) September 22, 2025 Market research from IG Group suggests the new retail access could expand the UK’s crypto investment market by up to 20%, with nearly one in three adults expressing interest in buying digital assets through ￰22￱ is strongest among younger investors aged 18 to 34, who cite regulation, safety, and tax efficiency as key attractions.