- The London Stock Exchange announced that it will start accepting applications for bitcoin and ether exchange-traded notes (ETNs) in the second quarter of this year.
- Crypto ETNs allow investors to trade securities tracking crypto assets on the stock exchange during London trading hours.
- This move by the LSE comes after the popularity of spot bitcoin exchange-traded funds (ETFs) in the U.S. since their launch in January.
In its statement at the beginning of the week, the London Stock Exchange said that it will accept ETN applications for Bitcoin and Ethereum in the second quarter of the year.
LSE Announces Bitcoin and Ethereum ETNs
On Monday, the London Stock Exchange announced that it will start accepting applications for bitcoin and ether exchange-traded notes (ETNs) in the second quarter of this year. The LSE stated that it will begin accepting applications following an information note it previously published. The LSE said, “The full start date will be announced in due course.”
“To reduce the risk of delays in the acceptance of trading in Crypto ETNs, the Exchange encourages early participation from potential issuers interested in listing,” the LSE added in the application information note. According to the information note, crypto ETNs will only be available to professional investors.
This comes after the UK Financial Conduct Authority (FCA) indicated that it would not object to creating a listing market for crypto-backed exchange-traded notes (ETNs).
As mentioned in the document, ETNs are debt instruments that provide exposure to an underlying asset. Crypto ETNs enable investors to trade securities tracking crypto assets on the stock exchange during London trading hours.
Global Interest Increases Following Demand in the U.S.
The move by the LSE comes after the popularity of spot bitcoin exchange-traded funds (ETFs) in the U.S. since their launch in January. On Friday, the total trading volume for spot bitcoin ETFs in the U.S. surpassed $100 billion, reaching $106.59 billion, according to data compiled by Yahoo Finance.
