UK investors only have until April to add crypto ETNs to their ISAs: FT

CoinDesk

by Jamie Crawley

February 26, 2026

AI-Generated Deep Dive Summary

The UK government has announced that investors will only have until April 6 to add cryptocurrency exchange-traded notes (ETNs) to their tax-free Individual Savings Accounts (ISAs). Following the lifting of a ban on retail access to crypto ETNs last October, which was seen as a significant step toward broader adoption of crypto investments, HMRC has decided to reclassify these instruments. Starting from April 6, crypto ETNs will only qualify for Innovative Finance ISAs (IFISAs), a less mainstream and less widely used investment vehicle, rather than the more common stocks and shares ISAs. This decision means that mainstream investment platforms, which currently do not offer crypto ETNs, will not include them in their services. As a result, UK investors seeking to benefit from tax-free growth on their crypto investments through ISAs will no longer have access to this option. While existing holders of crypto ETNs within their ISAs are allowed to keep these assets without facing forced sales, HMRC’s reasoning for the reclassification points to the “innovative nature” and emerging status of the cryptocurrency market. The move has sparked criticism from industry experts, including George Bauer of Fidelity, who argue that limiting access to IFISAs undermines the broader adoption goals of crypto investments. Bauer highlighted that this decision risks isolating the UK as an outlier in global financial markets where exchange-traded products (ETPs) have already been widely adopted for crypto investments. HMRC has indicated it will review its ruling with the possibility of re-including crypto ETNs into stocks and shares ISAs at a later date, but for now, investors are left without a clear pathway to access these assets within their tax-free wrappers. This decision comes as a blow to the growing crypto investment community in the UK, which had hoped for greater integration into mainstream financial products like ISAs. The reclassification not only limits immediate opportunities for retail investors but also raises concerns about the UK’s position in the global crypto market. As other major markets continue to expand access to crypto-related financial instruments, the UK’s decision could hinder its competitiveness in fostering innovation and attracting investment in this rapidly evolving sector. For those interested in crypto, this development underscores the ongoing challenges and regulatory uncertainties faced by investors in the UK. While existing holders of crypto ETNs within their ISAs can retain these assets, the lack of new opportunities for mainstream investors to access such products under a tax-efficient wrapper may slow down the adoption of cryptocurrency as an investment vehicle. The decision also highlights the importance of staying informed about regulatory changes and their potential impacts on investment

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Originally published on CoinDesk on 2/26/2026