London Stock Exchange Set to Introduce Crypto ETNs starting May 28

March 27, 2024

The London Stock Exchange (LSE) is gearing up to launch cryptocurrency exchange-traded notes (ETNs) tracking the performance of Bitcoin and Ether on May 28.

This move aligns with the FCA’s commitment to enhancing measures against crypto market abuse, demonstrating a proactive stance toward regulating the evolving crypto landscape. The decision to introduce crypto ETNs follows the trend set by the U.S. Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds earlier this year.

According to the March 25 announcement, applications for these crypto ETNs can be submitted starting April 8, with successful funds expected to be listed the following month, pending approval by the Financial Conduct Authority (FCA). To meet the stringent requirements set by the FCA, these ETNs must be physically backed, non-leveraged, and denominated solely in Bitcoin or Ether. The underlying assets will be securely held in cold storage by licensed custodians in the U.K., EU, or the U.S., ensuring the safety and integrity of the investments.

The introduction of crypto ETNs on the London Stock Exchange opens up new avenues for investors to diversify their portfolios and participate in the growing crypto market within a regulated framework. This initiative marks a significant step towards the mainstream adoption of digital assets within traditional financial markets, offering professional investors a bridge to the world of cryptocurrencies.

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