London has officially entered the blockchain chat. The UK government has approved cryptocurrency Exchange Traded Notes (ETNs) as eligible investments within tax-advantaged savings plans. For the first time, investors can hold these assets in an Individual Savings Account, better known as a UK crypto ISA, and even in their personal pension portfolios.
After years of hesitation, the gate to regulated crypto exposure has opened. The decision came as the Financial Conduct Authority lifted its ban on retail investors buying crypto ETNs. Within hours, the tax authority confirmed that these assets will be allowed inside ISAs and self-invested personal pensions (SIPPs).
From ban to blessing
The new rule gives investors the green light to buy crypto ETNs through their UK crypto ISA during the current tax year. But from April 6, 2026, the classification changes. Crypto products will be transferred from the popular Stocks and Shares ISA to the lesser-known Innovative Finance ISA (IFISA).
The IFISA was once home to peer-to-peer lending platforms and is not covered by the Financial Services Compensation Scheme. That means investors will get the tax benefits without the traditional safety net if things go wrong. It is a calculated risk that marks the UK’s cautious yet historic embrace of digital assets.
Platforms are not quite ready
Even with the regulator’s approval, investors may need to wait before buying. Hargreaves Lansdown, the UK’s largest retail investment platform, said crypto ETNs will not be available until early next year. The company explained that it is still developing the client process and must complete risk assessments for all retail buyers.
A spokesperson from Hargreaves Lansdown added, “Bitcoin is not an asset class, should not be relied upon to meet financial goals, and has no intrinsic value.” The cautious tone shows that while regulators are loosening restrictions, traditional institutions remain skeptical.
AJ Bell, the country’s second-largest platform, also confirmed that crypto ETNs will eventually be available but not immediately. Investors are ready, but the industry infrastructure still needs time to catch up. As seen in the Financial Times.
The market landscape
Seventeen crypto ETNs are currently listed on the London Stock Exchange from issuers such as Fidelity, Invesco, WisdomTree, and 21Shares. These products track the price of major cryptocurrencies and allow investors to gain exposure without using crypto exchanges or digital wallets. For many, this makes the UK crypto ISA a safer entry point into the digital asset world.
Final notes on the UK crypto ISA
The decision marks a turning point for the United Kingdom’s financial evolution. By including crypto ETNs in tax-advantaged accounts, the government has positioned itself among the few global economies to formally integrate digital assets into mainstream investment structures. It is a strategic move that signals both ambition and caution.
While the UK crypto ISA will not make everyone a millionaire overnight, it changes the conversation. The debate is no longer whether crypto belongs in regulated markets but how it will coexist with them. Britain has now wrapped Bitcoin in a tax bow, and whether it becomes a gift or a gamble will depend on how responsibly the market handles its new freedom.
