Crypto ETNs to Begin Trading on London Stock Exchange from May 28

By: Isha Das

The London Stock Exchange (LSE) has announced its plans to commence trading of Bitcoin BTC and Ethereum ETH crypto exchange-traded notes (ETNs) from May 28 according to a notice published on March 25. The LSE also stated that issuers intending to be part of the launch must fulfil all requirements and submit a complete documentation by April 15.

The official launch date will allow ample time for potential applicants to prepare necessary documentation and for the exchange to assess the compliance of issuers to the requirements. The final decision of the launch remains dependent on Financial Conduct Authority's (FCA) approval of the base prospectuses from applicants.

Earlier on March 11, without specifying any particular date, LSE declared that it would start accommodating applications in the second quarter of 2024. The FCA, on March 20 gave a green light to requests to establish crypto ETNs from Recognised Investment Exchanges. This move has been viewed as a welcoming step by UK towards the establishment of crypto ETNs

Crypto ETNs provide professional investors with novel ways to invest in crypto. Although similar to exchange-traded funds (ETF) as they track the price of the underlying crypto, they differ significantly in their design.