The UK will lift its four-year ban on Bitcoin ETFs this week, X’s Crypto Rover reported. The move will allow retail investors to invest in Bitcoin through regulated channels, marking a significant change in the country’s crypto policy.
💥Breaking news:
UK set to lift ban on #Bitcoin ETFS this week! pic.twitter.com/BPtelTcR3B
— Crypto Rover (@rovercrc) October 5, 2025
Background of the ban
In January 2021, the FCA banned the sale of crypto ETFs to retail investors, alleging excessive volatility, fraud risk and lack of regulation. The FCA reversal is global. In January 2024, 11 spot Bitcoin ETFs were approved in the US, accelerating billions of dollars in inflows. Cryo ETFs have also been introduced in Hong Kong and Australia. The UK’s FSMA 2023 has developed a regulatory framework for regulating digital assets that allows the FCA to safely lift the ban.
Market impact
Bitcoin ETFs are now available to individual investors to purchase through their brokerage accounts, making them less difficult to acquire and increasing their use. Bitcoin prices are expected to rise as analysts predict an increase in demand, including the launch of an ETF in the US in 2024. It is also possible that pension funds and hedge funds will enter the market due to increased liquidity. By 2025, the crypto market will have matured, with stablecoins exceeding $180 billion and DeFi platforms managing trillions of dollars. The approval of ETFs in the UK has made London a business-friendly location for investing in cryptocurrencies.
Risks and challenges
The FCA can impose disclosure and prospectus censorship. Retail constraints and temporary fluctuations may occur as the market adjusts to new inflows. Platform approval may be affected by implementation delays. The decision to lift the ban will allow Bitcoin ETFs to enter the UK market, making them more accessible, used and institutionalized. This move provides balanced investor protection and strengthens London’s crypto finance position.
