- The London Stock Exchange has named the launch date for cryptocurrency ETNs.
- Trading of the exchange-traded notes will begin on May 28, 2024.
- The product will only be available to professional investors in the UK.
On May 28, 2024, the London Stock Exchange (LSE) will start trading exchange-traded notes (ETNs) for bitcoin and Ethereum. ETN issuers must prepare the relevant documentation by April 15, 2024, the exchange said in a statement.
The document submitted by the LSE contains a number of requirements for issuers, including preparing a detailed plan and obtaining authorization from the Financial Conduct Authority (FCA). According to the exchange, trading in cryptocurrency ETNs will only be available to professional investors:
“In selecting the May 28 date, we took into account that issuers will need time to comply with the requirements detailed in the newsletter. Cryptocurrency ETNs admitted to trading on the LSE are only suitable for professionals.”
Note, ETNs are types of unsecured debt securities that track an underlying asset index and are traded on the stock market. Thus, cryptocurrency ETNs will allow investors to trade securities that reflect the performance of crypto assets on the exchange.
Recall that in January 2024, the US Securities and Exchange Commission (SEC) approved the launch of a spot bitcoin ETF. This product is available to both institutional and retail investors. However, UK traders do not yet have access to bitcoin-ETFs in the US.
Bivu Das, managing director of Kraken UK division, supported the launch of bitcoin-based cryptocurrency ETFs in the UK. Coinbase UK CEO Daniel Seifert called the upcoming launch of exchange-traded notes a “significant step forward” for the crypto industry.
In early March, the LSE said it would start accepting applications for cryptocurrency ETNs in Q2 2024. However, the exchange did not name the exact date of the product’s launch at the time.
