London Stock Exchange to Accept BTC & ETH ETNs in 2024

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The London Stock Exchange (LSE) plans to allow applications for Bitcoin and Ether (ETH) exchange-traded notes (ETNs) by Q2 2024.

The announcement, made on March 11, states compliance with the exchange’s crypto ETF fact sheet. The specific start date for application acceptance is undisclosed, but requirements include physically backed and non-leveraged crypto ETNs with publicly available market prices or value measures for BTC or ETH.

According to LSE’s criteria, underlying crypto assets must be primarily stored in secure methods like cold storage and held by custodians adhering to anti-money laundering (AML) laws in UK, EU, Switzerland, or US jurisdictions.

ETNs, defined by LSE as debt securities offering exposure to underlying assets, allow investors to trade securities reflecting crypto asset performance during trading hours. 

Unlike ETFs, ETNs are backed by issuers rather than asset pools, providing a more flexible alternative. ETFs often focus on complex debt strategies not easily accommodated within fund structures.

The financial regulator emphasized the importance for exchanges to implement robust controls and safeguard investors effectively. Additionally, the FCA highlighted that cryptocurrency-backed ETNs must adhere to criteria such as regular disclosure and the provision of prospectuses within the UK Listing Regime.

Also Read: India’s Mudrex to Offer US Bitcoin ETFs to Indian Investors

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