‘Cut-throat’ battle for crypto ETNs erupts in UK after retail ban lifted

The UK just flipped the switch on crypto ETNs for retail investors — and it's already a bloodbath. Financial Times reports issuers are slashing fees to historic lows (we're talking 0.05%) in what they're calling a 'cut-throat battle' for dominance. Meanwhile, some legacy players are still charging up to 2.5% annual fees — absolute madness.

This fee war erupted after the FCA finally lifted its 2021 ban on retail access to crypto-linked funds on October 8. CryptoUK's Ian Taylor called it 'delightful' and highlighted the 'progress we've made toward introducing a more proportionate approach to consumer risk.'

The newly accessible ETNs include 21Shares' Core Bitcoin and Ethereum Core Staking ETPs (fees slashed to 0.1%), Fidelity's Physical Bitcoin ETP (now 0.25%), and CoinShares' Physical Staked Ethereum ETP (currently zero management fee — yes, FREE).

This FCA move is part of a bigger play to revive the UK's fading crypto relevance. The stablecoin drama has been a major flashpoint — industry pushed back hard against the Bank of England's strict corporate holding limits.

Bloomberg reports the BoE is now considering softening its stance as the US pulls ahead with the GENIUS Act providing clearer stablecoin rules. Even BoE Governor Andrew Bailey has dialed back his earlier warnings about stablecoins threatening financial stability, now acknowledging the tech's innovation potential.