Investor FAQ: FCA Ban on the Sale of Crypto ETNs to UK Retail Investors

01What has the FCA announced? chevron02Which XBT Provider products are affected? chevron03Does the FCA announcement mean that I have to sell my holdings?chevron04Does CoinShares intend to close the Exchange Traded Notes (ETNs)? chevron05Will I be able to buy before the deadline?chevron06Will we be able to sell after the ban comes into effect?chevron07Will the FCA announcement affect retail consumers outside the United Kingdom?chevron08How will the FCA announcement affect CoinShares?chevron09What effect will the FCA ban have on the liquidity of your products?chevron

The UK’s Financial Conduct Authority (FCA) has recently published rules banning the sale of exchange traded notes (ETNs) referencing crypto assets to UK retail investors from 6 January 2021.

Bitcoin Tracker One

Bitcoin Tracker Euro

Ether Tracker One

Ether Tracker Euro

Litecoin Tracker One

Litecoin Tracker Euro

XRP Tracker One

XRP Tracker Euro

No. Investors should in the first instance speak to their brokers or advisors to discuss their specific situations.  However, the FCA have confirmed that they will not require retail investors to sell existing holdings.

No. CoinShares will continue to operate XBT Provider as normal and has no plans to close the ETNs prematurely.

Investors should in the first instance speak to their brokers or advisors to discuss their specific situations. We note that the final rules banning the sale of these types of products will come into effect on 6 January 2021.

Yes. UK retail investors wishing to close their position after the final rules come into effect (i.e. 6 January 2021) will be able to do so. 

No. It is clearly stated that the FCA is prohibiting the marketing, distribution, and sale in or from the UK to all retail clients of any derivatives and ETNs that reference certain types of cryptoassets.

We want to reassure our investors that we will continue to operate our products as normal. We have a broad and diversified client base across a number of jurisdictions and our business strategy is to maintain that diversification and not become reliant on any single country. You can read our full response here.  

Our ETNs are traded on multiple exchanges outside the U.K. and we expect that to continue. Moreover, because our client base is distributed across several jurisdictions, we do not expect that the liquidity of our ETNs will be materially affected by the FCA ban.