- The London Stock Exchange (LSE) will launch trading of cryptocurrency exchange-traded notes (ETNs) on May 28, allowing professional UK investors to gain crypto exposure.
- ETNs will track the performance of cryptocurrencies. The LSE set requirements like only making ETNs available to professional investors initially.
- Crypto industry executives welcomed the move, though some said Bitcoin ETFs should also come to the UK. The LSE is providing a new regulated way to invest in crypto.
The London Stock Exchange (LSE) has announced that trading of cryptocurrency exchange-traded notes (ETNs) will begin on May 28, 2024. This comes two weeks after the LSE said it would start accepting applications from issuers of crypto ETNs.
Background on Crypto ETNs
ETNs are debt securities that track an underlying asset. Crypto ETNs will allow investors to trade securities that mirror the performance of cryptocurrencies on the LSE.
Currently, UK investors cannot access Bitcoin exchange-traded funds (ETFs) that are available in the US. Crypto ETNs on the LSE will provide an alternative way to gain exposure to crypto assets.
LSE Requirements for Crypto ETN Issuers
The LSE has set several requirements for issuers looking to list crypto ETNs:
- ETNs will only be available to professional investors on specific trading segments.
- Issuers have until April 15, 2024 to submit their plans.
- Plans must be approved by the UK Financial Conduct Authority by May 22.
- Trading will commence on May 28.
The LSE said setting the May 28 date will give issuers time to prepare required documentation like base prospectuses.
Industry Feedback on Upcoming Crypto ETNs
Crypto industry executives have responded positively to the LSE’s move:
- Coinbase UK CEO Daniel Seifert said more choice for investors is generally good.
- Kraken UK MD Bivu Das said Bitcoin ETFs should also come to the UK.
Conclusion
The London Stock Exchange is opening up a new way for professional UK investors to gain exposure to cryptocurrencies through ETNs. Trading will begin on May 28 following a preparation period for issuers looking to list these products. The move has been welcomed by crypto industry participants.
