The London Stock Exchange began listing Bitcoin and Ethereum ETNs from May 28
The London Stock Exchange will begin supporting ETN products for Bitcoin and Ethereum from the end of May. The London Stock Exchange will begin listing Bitcoin and Ethereum ETNs from May 28
Just two weeks after announcing that it would accept applications for exchange-traded bond (ETN) products for two cryptocurrencies, Bitcoin and Ethereum, from April 8, the London Stock Exchange continued The opening date for trading of these products is set to be May 28.
ETN is a form of bond that closely tracks the fluctuations of the underlying asset, thereby allowing investors to indirectly trade assets without directly holding them. This form of investment has many similarities with the new Bitcoin ETF product approved in the US in January but has so far attracted up to 54 billion USD in capital.
However, BTC and ETH ETNs listed on the London Stock Exchange will have to meet some strict regulations from UK financial authorities, including being limited to professional investors only and applications must be approved. approved by the UK Financial Conduct Authority (FCA). Additionally, the bonds are not allowed to support leverage and must store BTC and ETH in cold wallets with a high level of confidentiality and security.
The FCA has previously confirmed it will not prevent institutions such as the UK Stock Exchange from listing crypto ETNs.
Many experts have evaluated this move by British officials as an opening move for cryptocurrency investment activities.
Bitcoin price is reacting positively to the above information, skyrocketing from 66,500 USD to 70,800 USD.
Previously, the London Stock Exchange announced that it would begin accepting ETN (exchange-traded bond) applications for the two asset classes BTC and ETH in the second quarter.
According to a March 11 announcement, the London Stock Exchange (LSE) said that Bitcoin and Ethereum ETNs will initially be available only to professional investors. Currently, the exchange is calling for potential issuers to register to list crypto ETNs.
“To minimize the risk of delays in the registration period, the exchange encourages early participation from potential issuers interested in accepting cryptocurrency ETNs.” - The Department wrote in the statement.
Some of the requirements for issuers to register for ETNs set out by the LSE include:
No leverage support;
Demonstrate stored value publicly;
The underlying assets are BTC and ETH which must be stored in a cold wallet;
Guardian of AML regulatory entities in the UK, EU, Jersey, Switzerland or US.
LSE added: “The exact Q2 launch date will be announced in due course.”
LSE's crypto ETN application follows a statement from the UK's Financial Conduct Authority (FCA), which said it would not object to proposals from recognized investment exchanges. , including LSE. This has created the foundation for developing the ETN segment for crypto assets to the market.
The announcement of the London Stock Exchange is said to be the catalyst that helped Bitcoin rise to a new ATH at 71,800 USD at noon on March 11. At the time of writing, the coin has not had a strong correction like previous pumps, currently at 71,500 USD.
ETN is considered a type of “soft” ETF. Unlike ETFs, ETNs are debt securities whose value is guaranteed by its issuer, not the asset class it represents. LSE's announcement of crypto ETN support comes two months after the SEC approved 11 Bitcoin spot ETFs, fueling increasingly positive sentiment about the current market.
