The U.K.’s financial regulator, the Financial Conduct Authority (FCA), has proposed that certain retail investment funds be permitted to allocate up to 10% of their assets in cryptocurrency exchange-traded notes (ETNs). This suggestion was made for UCITS (‘Undertakings for Collective Investment in Transferable Securities’) schemes, as well as some non-UCITS retail schemes (NURS), in the FCA’s latest quarterly consultation document. UCITS and NURS are akin to U.S. mutual funds, being regulated, open-ended structures that gather capital from retail investors into managed portfolios. The FCA stated, «Our proposed 10% limit for UCITS and NURS would also mitigate the risk of significant impacts arising from crypto ETN exposure.» This proposal signifies a further step towards broader acceptance of crypto exchange-traded products (ETPs) in the U.K. under the ETN classification. The FCA initially allowed retail investors access to such funds in October 2025, lifting a ban that had been enforced since 2021. Investment vehicles that enable individuals to gain exposure to cryptocurrency without the necessity of purchasing and holding the assets themselves have been pivotal in the mainstream adoption of crypto over recent years. However, the regulatory challenges surrounding their broader implementation in the U.K. have faced criticism from observers who argue it may place the nation at a competitive disadvantage relative to its counterparts.