Tax treatment of cryptoasset Exchange Traded Notes policy
Published 8 October 2025
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Background
Cryptoasset Exchange Traded Notes (cETNs) are debt securities designed to track the performance of referenced cryptoassets.
This page clarifies the tax treatment of cETNs following changes to Financial Conduct Authority (FCA) rules from 8 October 2025, which allow retail investors to access these products.
The update outlines how cETNs can be held within ISAs and registered pension schemes, and explains the transitional arrangements for Individual Savings Account (ISA) managers. Our aim is to ensure industry stakeholders, including ISA managers, their representative bodies, and other interested parties, understand the implications for tax-advantaged accounts and can prepare for the changes with confidence.
Policy statement
From 8 October 2025, changes to FCA rules allow retail investors to access cETNs. These products, previously restricted to professional investors, will be available to individuals through FCA-recognised investment exchanges.
To support long-term savings and investment habits, the government is allowing cETNs to be held within registered pension schemes from 8 October 2025.
Initially, cETNs will be automatically eligible for inclusion in stocks and shares ISAs. From 6 April 2026, they will be reclassified as qualifying investments within the Innovative Finance ISA (IFISA).
This reflects the government’s commitment to ensuring that UK savers can access a diverse range of assets within tax-advantaged wrappers, while recognising the evolving nature of digital finance.
The government will keep the inclusion of cETNs in tax-advantaged accounts under review with a view to including them in the stocks and shares ISA at a later date as the market matures and as consumer understanding deepens.
The government remains supportive of the UK’s growing cryptoasset sector and continues to develop a comprehensive regulatory framework that fosters innovation while protecting consumers.
Information for ISA managers
Any cETNs that have been included in stocks and shares ISAs before 6 April 2026 will be treated as qualifying IFISA investments from that date.
ISA managers who want to offer cETNs within an IFISA will need HMRC approval to offer the IFISA. You can find details on how to apply on HMRC’s guidance for applications for ISA manager status.
This approach will minimise the operational impact for ISA managers and protect investors, providing continuity while supporting the evolution of approach to including cETNs in tax advantaged wrappers.
HMRC will update the ISA managers’ guidance accordingly.