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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
1. You could lose all the money you invest
2. You should not expect to be protected if something goes wrong
3. You may not be able to sell your investment when you want to
4. Cryptoasset investments can be complex
5. Don't put all your eggs in one basket
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Crypto investing is stepping into the mainstream. With the FCA approving crypto exchange-traded notes (ETNs) for retail investors, questions are already swirling about whether these products might soon find a home inside pension accounts. Is this a tax-efficient way to supercharge your pot or something to swerve entirely?
Crypto exchange-traded products (ETPs) are somewhat of an umbrella term that would include things like cryptocurrency exchange-traded funds (ETFs) that have proved hugely popular in the US and Europe. Also, falling under this umbrella are crypto exchange-traded notes (ETNs), which were recently given the green light from the FCA.
A crypto ETN (exchange-traded note) is a listed investment product that tracks the price of a cryptocurrency, such as Bitcoin (BTC) or Ethereum (ETH). Instead of holding the coins directly, you buy a note issued by a financial institution that promises a return mirroring the crypto’s price.
Crypto ETNs trade on exchanges just like shares or ETFs, and can soon be bought through mainstream investing platforms. Many are fully backed, meaning the issuer holds the actual crypto in custody to reduce risk. With FCA regulation now in place, crypto ETNs offer UK investors a regulated, transparent way to access crypto. So, no wallets, private keys or exchanges needed.
Potentially, yes, if your pension provider or self-invested personal pension (SIPP) platform supports them.
Most SIPPs let investors choose from a wide range of exchange-traded products, including ETFs, investment trusts, and listed notes (like these crypto ETNs).
Once crypto ETNs become available for retail investors on the London Stock Exchange (LSE), providers may allow them as eligible securities to hold in your pension tax wrapper.
There are a few things to bear in mind if you’re thinking about holding crypto ETNs in your pension:
If your pension platform does allow you to hold crypto ETNs, here’s why you might consider them:
Of course, crypto exposure in any form, let alone in a pension comes with some serious caveats:
Without sounding like a broken record, as always, it depends on your risk appetite, time horizon, and retirement goals.
If you’re a cautious investor who’s risk averse or someone nearing retirement, crypto ETNs likely don’t belong in your pension. Their volatility can easily outweigh any diversification benefit.
If you’re younger and far away from retirement, comfortable with risk, and already have a diversified pension portfolio, a small allocation (perhaps 1% to 3%) could make sense, just like you may add a small allocation to an asset of something alternative like gold, as long as your provider allows it and you understand the risks involved.
In any case, crypto ETNs should be mostly viewed as a speculative satellite investment, not a core pension holding.
Most UK investing platforms are still laying the groundwork to let people invest in these products and these are some of the trading apps who’ve signalled they’re working on this:
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
Read the full methodology
"Crypto ETNs are interesting because they make regulated crypto exposure possible in UK investing accounts, and the ability to hold them in a SIPP simply opens up an avenue for tax-efficient crypto investing.
But, it’s still crypto, they’re still high-risk, high-volatility assets. Being able to hold them in a pension doesn’t minimise most downsides.
For most investors, the best approach is to treat crypto like hot sauce. A little bit can add flavour to your portfolio, but too much could ruin the whole dish."
Crypto ETNs could soon give UK investors a simple, regulated way to gain crypto exposure through traditional tax-efficient wrappers like SIPPs. That’s a big step forward, but not a free pass.
They offer diversification and tax efficiency, but also bring volatility, issuer risk, and uncertain long-term regulation. If you do decide to hold crypto ETNs in your pension, keep the allocation small, stay informed, and review your risk profile regularly.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
We’ve rounded up some of the best crypto ETPs (ETNs) already listed on the London Stock Exchange (LSE), what they track, who issues them, and what you need to know before investing.
Whether you’re looking for a Bitcoin or Ethereum ETN, check out our list of all the crypto ETNs currently listed on the London Stock Exchange (LSE).
Learn how to invest in gold exchange-traded commodities (ETCs), including where to access them and some of the best options.
Find out what crypto ETNs are and what you should know if you’re thinking about investing.
