On March 11, the London Stock Exchange unveiled a plan to accept applications for Bitcoin and Ether (ETH) exchange-traded notes (ETNs) by Q2 2024.
The start date remains undisclosed, but criteria mandate physically backed, 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 the LSE as debt securities offering exposure to underlying assets, allow investors to trade securities reflecting crypto asset performance during trading hours.Â
Unlike ETFs, ETNs are backed by issuers rather than asset pools, providing a more flexible alternative. ETFs often focus on complex debt strategies that are not easily accommodated within fund structures.
The financial regulator emphasized the importance of exchanges implementing robust controls and safeguarding 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
