[NEWS] London Stock Exchange to start trading Bitcoin and Ethereum ETNs from May

The London Stock Exchange announced on the 25th that it will start accepting applications for Bitcoin (BTC) and Ethereum (ETH) ETNs (exchange-traded notes) from the 8th of next month.

This decision is based on a notice from the exchange on the 11th of this month, and indicates its intention to allow trading of Bitcoin ETNs and Ethereum ETNs in the second quarter of this year.

ETN stands for "Exchange Traded Note" and is included in the ETP (exchange-traded product) category, just like ETFs (exchange-traded funds). It will be a listed product called an exchange-traded note or index-linked security.

Subject to approval by the FCA (Financial Conduct Authority), the London Stock Exchange mentioned in its base prospectus that it plans to start trading these ETNs on May 28.

Issuers are already preparing application documents. The reason for starting to accept registration applications from April 8 is likely to be to allow issuers time to submit application documents that meet regulatory requirements. It then states, "We have decided to launch the cryptocurrency ETN market on May 28th to allow the maximum number of issuers to be in the market on the first day of trading."

Issuers aiming to list their ETNs on May 28th must submit the necessary information to the exchange by the 15th of next month. They must provide details on how the issuer and the ETN they plan to list meet the requirements outlined in the Cryptocurrency ETN Fact Sheet and the Draft.

On the other hand, issuers that do not meet the specified requirements, have not submitted their application by April 15th, or have not had their base prospectus approved by the FCA by noon on May 22nd will not be eligible to participate on the first day of trading.

Following the US Bitcoin Spot ETF

On January 11th, the SEC (US Securities and Exchange Commission) approved and listed the first Bitcoin spot ETF in the United States. This Bitcoin spot ETF has shown high demand since it began trading, which has also helped to boost the cryptocurrency market. Inspired by these success stories, the UK has pioneered a new financial product: crypto ETNs.

Crypto ETNs allow UK-based investors to trade securities that track crypto assets on exchanges. Currently, only accredited investors can trade. The UK aims to become a hub for crypto and Web 3.0, and crypto ETNs could be the first step.

Source: Announcement
Image: Shutterstock

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