You’d think that when the Financial Conduct Authority lifts a ban, things would actually become, well, available. But this is Britain, and we’re talking about cryptocurrency, so naturally nothing is straightforward.
Retail investors can now legally buy crypto exchange traded notes. That’s the headline. The reality is considerably less exciting: most people won’t actually be able to purchase them for months, and if you fancy sticking them in your ISA, you’d better hurry up and wait simultaneously.
Welcome to the world’s most confusing regulatory change.
Here’s what’s happening at the major investment platforms. Hargreaves Lansdown, which handles more retail investment accounts than anyone else in the UK, has essentially said “yes, but not yet.” They’re planning to offer crypto ETNs sometime in early 2026, once they’ve sorted out their customer assessment process.
They’ve also made their feelings abundantly clear, stating bluntly that bitcoin lacks intrinsic value and shouldn’t feature in serious investment portfolios. It’s the financial equivalent of agreeing to stock something whilst simultaneously telling customers they probably shouldn’t buy it.
AJ Bell is taking a similar approach. They’ll offer these products eventually, just not immediately. No firm dates, no promises, just a general sense that it’ll happen when it happens.
Now for the really peculiar bit. The government has decided that crypto ETNs can live inside your stocks and shares ISA, giving you that lovely tax-free wrapper on any gains. Brilliant news, except there’s a catch, this arrangement expires on 5 April next year.
After that date, crypto ETNs get shunted into something called an Innovative Finance ISA. If you’ve never heard of it, you’re not alone. Roughly 10,000 people used one last year, compared to 15 million who opened regular ISAs. It’s the investment account equivalent of a forgotten cupboard nobody opens.
The problem runs deeper than obscurity. These specialist ISAs don’t qualify for the Financial Services Compensation Scheme, meaning your money lacks the usual £85,000 safety net. They were originally designed for peer-to-peer lending, and now crypto is joining the party nobody wanted to attend.
Wealth managers are baffled. One pointed out the absurdity: someone could theoretically shift half a million quid worth of stocks and shares ISA into crypto products this tax year, but come April, that door slams shut for anyone without an existing Innovative Finance ISA. It’s policy that makes sense only if you don’t think about it too hard.
The annual ISA allowance is £20,000, and we’re already halfway through the tax year. If you’ve already used up your allowance, you’ve got until April to free up space and get some crypto exposure inside that tax wrapper, assuming the platforms have actually made them available by then.
When these products do eventually materialise, there will be 17 crypto ETNs to choose from, issued by recognisable names like Fidelity and Invesco. They track cryptocurrency prices without requiring investors to navigate the Wild West of crypto exchanges and digital wallets. It’s crypto exposure for people who want regulatory guardrails and familiar institutions.
What we’ve got is a peculiar regulatory limbo. Crypto ETNs are legal but largely inaccessible. They’re welcome in ISAs but only temporarily. Platforms are supportive but deeply cautious. The government wants to review the situation “as the market matures,” which could mean anything from next year to the next decade.
For investors eager to add some crypto exposure through regulated products, the message is clear: patience required, clarity not included. The ban may be lifted, but the barriers remain firmly in place.