Applications for Bitcoin and Ethereum ETN admission to be opened by the London Stock Exchange
The United Kingdom’s primary stock exchange is preparing to accept applications for exchange-traded notes (ETNs) tied to cryptocurrencies. The London Stock Exchange (LSE) announced in a press release on March 11 that it will begin accepting applications for Bitcoin (BTC) and Ethereum (ETH) ETNs in the second quarter of 2024. While the exact launch date has yet to be disclosed, the LSE stated that it will provide further details in due course and will accept applications based on the information outlined in the crypto ETN factsheet.
The factsheet states that crypto ETNs will only be available for trading on the LSE to professional investors and will be categorized under specific trading segments. Each crypto ETN may offer up to three different currency options, as stated in the factsheet.
The document also emphasizes that the custody of the underlying cryptocurrencies for ETNs must primarily be held in cold storage. Although the LSE does not provide further details on this requirement, it specifies that custodians must comply with anti-money laundering regulations in jurisdictions such as the U.K., E.U., Jersey, Switzerland, or the U.S. Following the announcement, the price of Bitcoin surged above $71,000, and Ethereum surpassed $4,000. However, it remains uncertain whether the LSE’s decision had a direct impact on the price increase.
This move by the London Stock Exchange towards embracing web3 technologies is not entirely new, as the exchange has been exploring the potential applications of blockchain technology for traditional financial assets for some time. In September 2023, the London Stock Exchange Group announced plans to introduce blockchain-based trading for traditional financial assets, citing the potential benefits of integrating blockchain into traditional markets.
London-based B2C2 recently joined Luxembourg’s VASP register amid regulatory shifts in the European Union. Stay updated with the latest news by following us on Google News.
