What is Ethereum
Ethereum is the leading smart contract platform, launched in 2015, underpinning thousands of decentralised applications (DeFi, NFTs, stablecoins). Its native token (ETH) is used to pay network fees ("gas").
Since moving to Proof-of-Stake in 2022, ETH holders can stake their coins to help secure the network and earn a reward — a feature that sets Ethereum apart from Bitcoin.
Frequently asked questions
Is Ethereum regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying Ethereum on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is Ethereum taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
