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London Stock Exchange to Launch Bitcoin and Ethereum ETNs

The London Stock Exchange is set to introduce Bitcoin and Ethereum exchange-traded notes (ETNs) on May 28, 2024, aligning with the UK's ambition to spearhead global cryptoasset technology and investment. Applications start April 8.

  •  The UK plans to enter the digital asset exchange-traded market, with the London Stock Exchange preparing to launch Bitcoin and Ethereum ETNs.
  • Set for a debut on May 28, 2024, these crypto ETNs will allow UK investors to trade securities tracking digital assets, with applications opening on April 8 pending FCA authorization.
  • The UK's move to introduce crypto ETNs for professional investors aligns with its broader strategy to become a global hub for crypto asset technology and investment.

In January this year, the US Securities and Exchange Commission (SEC) approved several Spot Bitcoin ETFs. Within just 50 days of trading, this investment product experienced tremendous success. Following this, the UK has announced plans to delve into digital asset exchange-traded markets.

On Monday, the London Stock Exchange announced that it is preparing to launch a market for Bitcoin (BTC) and Ethereum (ETH) exchange-traded notes (ETN). These ETNs will enable investors in the UK to trade securities that track digital assets on the exchange.

According to the announcement, the ETNs are set to debut on May 28, 2024. Interested parties can apply for these crypto ETNs starting April 8, with the potential for listing in the subsequent month, pending authorization from the nation's Financial Conduct Authority (FCA). Furthermore, issuers are required to submit a preliminary prospectus and a letter detailing their compliance with ETN criteria by April 15.

Earlier this year, the FCA announced that it would not reject applications from Recognized Investment Exchanges (RIEs) looking to establish a listed market segment for ETNs, specifying that these products would be accessible solely to professional investors.

Following a series of announcements by the U.K. government aimed at fostering a crypto-friendly environment, regulatory efforts are underway to position the UK as a leading destination for cryptocurrency. In 2022, the government unveiled intentions to transform Britain into a worldwide center for crypto asset technology and investments, with a strong focus on leveraging blockchain technology and the use of digital assets.

Edited by Harshajit Sarmah