HMRC’s new rules now allow certain crypto investment funds to qualify for ISA inclusion.
In recent years, cryptoassets, from Bitcoin and stablecoins to Bored Ape Yacht Club NFTs, have captured global attention. Across the Atlantic, the sector has surged under Donald Trump’s second term, despite his earlier dismissal of cryptocurrencies as “not money” and “highly volatile.” Reports suggest President Trump has personally earned millions through World Liberty Financial, a crypto firm launched by his sons in September 2024.
In contrast, the UK’s stance remains cautious. There’s no Starmer meme coin to rival TRUMP, and Rishi Sunak’s ambition to make the UK a “global cryptoasset technology hub” has yet to materialize. The Financial Conduct Authority (FCA) has long treated cryptoassets as unregulated investments. Back in October 2020, it banned Exchange Traded Notes (ETNs) linked to crypto, citing their unsuitability for retail investors and lack of reliable valuation.
Fast forward five years: the FCA has lifted its ban on crypto ETNs, and HMRC has confirmed these funds are now eligible for inclusion in stocks and shares ISAs. However, this window is short-lived, after 5 April 2026, crypto eligibility will end, and ETNs will only be permitted in Innovative Finance ISAs, a niche product offered by few providers.
If you’re considering crypto within an ISA, remember the FCA’s warning: these assets have no reliable basis for valuation.
Important Notes
- Investing in shares is a long-term commitment and should align with your risk profile and financial circumstances.
- Investment values can fall as well as rise, and you may not get back your original investment.
- Tax treatment depends on individual circumstances and may change.
- The FCA does not regulate tax advice.
9th January 2026
