Crypto gains traction among investors as FCA opens UK-listed ETP access

Cryptoassets, led by bitcoin, are firmly entering mainstream portfolios as more investors add digital assets to their long-term plans, according to recent market data and industry surveys. While last year saw roughly 12% of investors owning crypto, the share is likely higher now as demand expands and fintech platforms broaden access. Yet a notable portion of potential buyers remains uncertain about the asset class: WisdomTree data show about 72% of investors say they lack knowledge about cryptocurrencies, and roughly 31% say they wouldn’t know how to act if prices suddenly fell.

The Financial Conduct Authority is regulating crypto platforms and is poised to lift its ban on crypto exchange-traded products for retail investors starting Oct. 8, a change that could draw more money into the space. The shift is seen as a potential turning point in how ordinary savers and individual advisers approach digital assets, moving some exposure from crypto-only exchanges toward more familiar investment vehicles.

Adria Beso, head of European distribution at WisdomTree, said that retail access to UK-listed crypto ETPs could become the preferred vehicle for many investors, noting that advisers and platforms will play a crucial role in guiding adoption. “Now that the FCA has permitted retail access to UK-listed crypto ETPs, we expect this to become the preferred vehicle for investors,” Beso said. “Institutions will play a crucial role in guiding adoption, whether through advisers, platforms, or direct allocations.” Under current rules, investors must use crypto-specific platforms to access digital assets rather than crypto products traded on stock exchanges. The regulatory change is thus widely seen as a step toward broader, more mainstream participation.

The crypto market has boomed over the past year, aided by a mix of factors, including political catalysts and growing institutional interest. The notes indicate that the rally has come in part as more financial institutions allocate to crypto assets and as a wave of crypto-focused firms has emerged. The trend signals that many investors now view crypto as a potential long-term saving or investment tool rather than a pure bet on price movements. Among those who hold crypto, roughly a quarter say they are incorporating it into their retirement planning, while about 20% have used crypto savings for a home purchase or other long-term goals.

Despite growing interest, experts emphasize that cryptocurrencies remain highly volatile and should constitute only a small portion of most portfolios. Dovile Silenskyte, director of digital assets research at WisdomTree, cautioned that “Bitcoin is a very volatile asset. Over the past 11 years, it was the best performing asset during eight of those years, and the worst-performing asset during three of those years. And it hasn’t found itself anywhere in the middle.” The data also show a wide range of investor appetite: one in four investors would allocate more than 10% of their portfolio to crypto, a level many experts consider aggressive for typical diversified portfolios. WisdomTree suggests that crypto exposure of around 1% could help enhance returns without substantially increasing overall risk, a figure likely to be scrutinized as more households experiment with crypto.

Education, in fact, is repeatedly highlighted as essential to prudent crypto use. Silenskyte underscored the need for investors to understand how crypto fits within a portfolio, how to react to price swings, and how regular investing and balanced asset allocation can help manage risk over time. “Education is essential to helping investors use crypto sensibly and manage the ups and downs. By understanding how crypto works in a portfolio and how to react when prices fall, people can avoid taking on too much risk and make decisions that support their long-term goals,” she said. The research also indicates that a measured approach—small, steady allocations, ongoing monitoring, and clear investment objectives—can help investors navigate the asset class’s notorious volatility.

The broader market context remains mixed. While the regulatory move to authorize retail investment in crypto ETPs could broaden participation and simplify access, the sector still faces ongoing scrutiny around custody, liquidity, and market integrity. Proponents argue that a more standardized framework could attract traditional asset managers and advisers who previously hesitated, providing an avenue for diversification in an era of historically low yields on traditional bonds and equities. Critics, however, warn that ease of access may lead to overexposure among those who do not fully understand the risks or who do not implement disciplined risk management practices.

Industry participants stress that the evolving regulatory landscape is a catalyst for change but not a panacea. Financial planners and fund managers are urged to incorporate crypto exposure cautiously, balancing potential upside with risk controls, suitable client disclosures, and ongoing education. As institutional participation continues to rise, the market could see greater professional involvement in product design, risk monitoring, and investor education, potentially improving the resilience of crypto investments for ordinary savers over the long term.

In the near term, observers will be watching to see how the FCA’s rules are implemented in practice and whether the market’s liquidity and product availability meet investor demand. The shift toward listed crypto instruments could also influence the pricing and risk management practices of traditional funds and wealth platforms, with advisers reassessing how they present crypto exposure within diversified portfolios. If the early signals observed by WisdomTree prove durable, the coming months may mark a transition point where crypto becomes a more accepted, albeit still high-risk, component of retirement planning and long-term wealth-building strategies for a broader base of investors.