Key Points
- London Stock Exchange (LSE) plans to accept applications for Bitcoin and Ether ETNs in Q2.
- The crypto ETNs will only be accessible to professional investors.
The London Stock Exchange (LSE) has disclosed its plans to begin accepting applications for the admission of Bitcoin and Ether crypto exchange-traded notes (ETNs) in the second quarter of this year.
Engagement Encouraged
The LSE urges potential issuers interested in admitting Crypto ETNs to engage early to avoid delays in the admission timetable. The exact launch date will be confirmed later.
Professional Investors Only
According to an admission factsheet, the crypto ETNs will be exclusively available to professional investors. This development follows the UK's Financial Conduct Authority's (FCA) statement that it would not oppose proposals from Recognized Investment Exchanges (RIEs) to establish a listed market segment for cryptocurrency-backed ETNs.
ETNs are debt securities that offer exposure to an underlying asset. Crypto ETNs enable investors to trade securities that track crypto assets on the exchange during London trading hours.
This move by the LSE follows the popularity of U.S. spot Bitcoin exchange-traded funds (ETFs) since their inception in January. As of Friday, the cumulative trading volume for U.S. spot Bitcoin ETFs exceeded $100 billion, reaching $106.59 billion.
