The UK crypto market could grow by up to 20% following the introduction of regulated crypto Exchange-Traded Notes (ETNs) on Thursday (8th October), according to new research from investing and trading platform IG.
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% of UK adults would consider investing in crypto via ETNs. This represents a significant potential uplift from current levels of crypto ownership – 12%, according to the FCA’s latest study, and 25% according to IG’s new study. Interest is expected to be particularly strong among younger adults, with 50% of 18-24-year-olds and 49% 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%. A further 19% 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% backing its inclusion in ISAs (compared to 20% opposed) and 37% supporting its inclusion in pensions (versus 21% opposed).
Michael Healy, UK Managing Director at IG, said: “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.
