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The United Kingdom has opened the doors for crypto-exchange-traded notes (ETNs) to retail investors — a market previously limited to professional traders — sparking a price war between issuers vying for market share, according to the Financial Times.
In a report published on Thursday, the FT reported that several Bitcoin ETN issuers have reduced their fees to as low as 0.05%, describing the resulting competition as a “throat fight” for investors. Meanwhile, other crypto-linked ETNs continue to charge annual fees of up to 2.5%.
The fee war follows the Financial Conduct Authority (FCA) decision to lift his 2021 ban on retail access to crypto-linked funds, a change that took effect on October 8.
At the time of the policy reversal, Ian Taylor, board member of trade association CryptoUK, he told Cointelegraph: “We are happy to see this reversal”, highlighting the “progress we have made towards introducing a more proportionate approach to consumer risk”.
Among the newly accessible ETNs are 21Shares’ Core Bitcoin and Ethereum Core Staking ETP, which had their fees reduced to 0.1%; Fidelity’s Physical Bitcoin ETP, now charges 0.25%; and CoinShares’ Physical Staked Ethereum ETP, which currently carries no management fee.
Related: UK hits: Hundreds of crypto exchanges hit with FCA notices in October
The UK is falling behind in crypto adoption
The FCA rule change is also part of a wider effort to revive the UK’s declining position in global crypto adoption.
One of the key flashpoints has been the treatment of stablecoins after industry participants pushed back against Bank of England (BoE) proposals to impose strict corporate holding limits.
According to Bloomberg, the BoE is now considering softening its stance amid growing concern that the United States is pulling ahead after the passage of the GENIUS Act, which aims to provide clearer rules for stablecoin issuers.
BoE Governor Andrew Bailey has also moderated his tone in recent months, return from the first notices that private stablecoins can be a threat to financial stability. Instead, he recognized the potential of technology for innovation and its growing role in the financial system.
Related: Coinbase turns lobbying efforts to UK in scathing op-ed
