Key Takeaways:
- Crypto ETNs removed from Stocks and Shares ISAs effective 6 April 2026.
- From 6 April 2026 crypto ETNs banned in Stocks and Shares ISAs.
- Stocks and Shares ISAs will exclude crypto ETNs starting 6 April 2026.
HM Revenue & Customs (HMRC) has reclassified crypto Exchange-Traded Notes (ETNs), removing them from eligibility within Stocks & Shares ISAs from 6 April 2026 under UK ISA rules. From that date, UK investors will be unable to buy crypto ETNs inside the stocks-and-shares wrapper.
As reported by MoneyWeek (https://moneyweek.com/investments/bitcoin-crypto/hmrc-crypto-etn-isa-status?utm_source=openai), crypto ETNs were admitted to Stocks & Shares ISAs on 8 October 2025 after a prior Financial Conduct Authority (FCA) ban was reversed, but from 6 April 2026 they will qualify only under the Innovative Finance ISA (IFISA), which is not covered by the Financial Services Compensation Scheme. This marks a shift that narrows where crypto ETNs can be held within tax-advantaged accounts.
For investors, the change is primarily about wrapper eligibility rather than the underlying securities. If a platform does not offer an IFISA capable of holding securities such as ETNs, investors may face suspensions on new purchases, transfers to a general investment account, or sales of affected holdings, as reported by ETF Stream (https://www.etfstream.com/articles/uk-crypto-etn-investors-in-isas-could-become-forced-sellers?utm_source=openai).
The stated policy aim is consumer protection and clarity, yet industry voices warn that moving regulated crypto access into a niche ISA could constrain supervised routes for exposure, as reported by the Financial Times (https://www.ft.com/content/1445c7b3-dfcc-4c12-b23c-550c4a4845d8?utm_source=openai). Platform readiness, custody models, and operational differences between stocks-and-shares and innovative finance accounts remain material constraints.
Some providers argue the reclassification conflicts with the goal of providing safer, regulated channels to crypto exposure. Georg Bauer, Head of Investment & Product for Global Platform Solutions at Fidelity International, said the change “challenges the intention of allowing regulated access to crypto assets and protecting consumers from greater risk in using unregulated products,” as reported by GB News (https://www.gbnews.com/money/isa-users-face-strict-new-rules-enforced-by-hmrc?utm_source=openai).
Implementation will vary by platform as the 2026–27 tax year approaches. Specific treatments may evolve subject to regulatory updates and provider disclosures.
At the time of writing, WisdomTree, Inc., a prominent ETP issuer, last closed at $16.72, with after-hours indications near $17.11, based on data from Nasdaq. These figures are provided for context only and do not imply any view on the impact of ISA rule changes.
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