The London Stock Exchange (LSE) announced plans to launch a market for cryptocurrency exchange-traded notes (ETNs) on May 28th, 2024. These ETNs will track the performance of Bitcoin (BTC) and Ethereum (ETH), the two leading cryptocurrencies.
The LSE will begin accepting applications for trading these crypto ETNs from April 8th. Issuers will need to submit a draft prospectus and a letter explaining why their ETN meets exchange requirements by April 15th for consideration in the May 28th launch.
This launch is subject to approval by the Financial Conduct Authority (FCA), the U.K. regulator. The FCA previously indicated they would be open to proposals from recognized investment exchanges to create a market segment for ETNs.
It’s important to note that these ETNs will be available only to professional investors, not retail investors. The LSE has stated this is due to the inherent volatility of cryptocurrency markets. The launch of crypto ETNs on a major stock exchange like the LSE is a significant development for the cryptocurrency industry.
It could provide a more regulated and accessible way for institutional investors to gain exposure to cryptocurrency. However, it remains to be seen how this launch will be received by the broader market and what impact it will have on cryptocurrency prices.
