Apr 08, 2024

London Stock Exchange Set to Launch Bitcoin and Ethereum ETNs in May

  • The London Stock Exchange (LSE) stated in a notice that it will start a marketplace for trading Bitcoin and Ethereum exchange-traded notes (ETNs)
  • In line with the Financial Conduct Authority (FCA) regulations, they will be accepting applications from April 8.
  • Organizations interested in filing applications must submit theirs before April 15, while trading is expected to start by May 28.

The London Stock Exchange (LSE), in a new memo, said they would start accepting applications for the exchange-traded notes (ETNs) from April 8. However, they are set to launch the approved ETN applications in May.

The Financial Conduct Authority (FCA) says those interested should submit necessary information before April 15, pending when the ETNs begin trading on Tuesday, May 28, 2024.

All Details for the Launch of ETNs on The London Stock Exchange (LSE)

According to a notice from The London Stock Exchange (LSE) on March 11, the exchange indicated its intention to begin the trading of exchange-traded notes (ETNs) in the second quarter of the year. However, the exchange passed another round of notice on March 25, announcing specifically they will start admitting applications for ETNs beginning from April 8, 2024. These applications will be subject to approval from The Financial Conduct Authority (FCA). They also plan on allowing trading of these ETNs on Tuesday, May 28, 2024.

“We have decided to launch the market in Crypto ETNs on 28 May 2024 to enable the maximum number of issuers to be present in the market on the first day of trading,” the notice highlighted.

Furthermore, LSE said they allowed enough time between the acceptance of applications and the commencement of trading so issuers could meet the requirements. Moreover, they will get enough time to prepare documentation to establish a Crypto ETN program.

“In choosing this date, we have taken into consideration that we need to ensure that issuers meet the requirements for consideration detailed in the Crypto ETN factsheet, and importantly, it will also enable those issuers planning on admitting securities on the launch date, time to prepare documentation to establish a Crypto ETN program which will require a base prospectus to be approved by the FCA,” the notice said.

Crypto Community Optimistic as LSE Announces Bitcoin and Ethereum ETN Market Launch

A post from WatcherGuru about the launch of Bitcoin and Ethereum ETNs went viral, with the majority of the crypto community being optimistic about the launch. Nevertheless, a good number of them expressed pessimism about the setup of the crypto industry in the UK. According to an X user, he said the UK approach to crypto is confusing: trying to become a crypto hub and simultaneously pushing crypto exchanges outside of the country.

The new development comes months after the approval of spot Bitcoin ETFs in the United States. Apparently, the spot Bitcoin ETFs have been successful in the US, with those of Blackrock and Fidelity standing out, with $9.406B and $6.427B net assets, respectively. Subsequently, the latest news on ETNs shows the UK’s initiative to explore digital asset exchange-traded markets. Furthermore, the Bitcoin and Ethereum ETNs will allow traders in the country to trade securities that track BTC and ETH on the exchange.

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