LSE Welcomes Bitcoin and Ethereum Exchange-Traded Notes
The London Stock Exchange (LSE) has announced its acceptance of exchange-traded notes (ETNs) for BTC and ETH ETN in Q2 2024.
The underlying crypto asset will be stored in a cold wallet and available only to professional investors. The custodian(s) for listings will be subject to AML regulation in the UK, European Union, Jersey, Switzerland, or the United States.
ETNs are considered a milder substitute for ETFs and will be traded during the exchange’s trading hours. The UK’s Financial Conduct Authority (FCA) has expressed support for Recognized Investment Exchanges (RIEs) to create a market segment for crypto ETNs and allow them to offer the products to professional investors.
The FCA also encouraged exchanges to ensure efficient methods to protect investors and meet proper requirements, such as ongoing disclosure and prospectuses. The crypto community has been in a frenzy following the US SEC approval of multiple spot Bitcoin ETN funds earlier this year, and ETN approval for Ethereum and the flagship decentralized finance asset in the UK could provide another boost for the entire market.
(With inputs from Shikha Singh)
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