The London Stock Exchange to Launch Bitcoin and Ethereum ETN Markets on May 28, 2024

Introduction of Crypto ETN Market Reflects UK’s Move Towards Crypto-Friendly Regulations

The London Stock Exchange (LSE) has announced its plans to introduce a market for exchange-traded notes (ETNs) based on Bitcoin (BTC) and Ethereum (ETH) on May 28, 2024. This decision follows the LSE’s previous notice on March 11, 2024, stating that the exchange would accept applications for admission to trading of Bitcoin and Ethereum Crypto ETNs in the second quarter of 2024.

Key Points:

• Applications for crypto ETN trading can be made from April 8, 2024.
• The launch is subject to the approval of the base prospectuses by the Financial Conduct Authority (FCA).
• Issuers must submit details on how they meet the requirements for consideration by April 15, 2024.
• The FCA must approve issuers’ base prospectuses by midday on May 22, 2024, for them to participate in the first day of trading.

The London Stock Exchange has strategically chosen to launch the Bitcoin and Ethereum ETN markets on May 28, 2024, to ensure the maximum number of issuers can participate on the first day of trading. This move aligns with the UK government’s efforts to position the country as a global hub for cryptocurrency innovation and investment.

Bitcoin and Ethereum ETN Issuers Must Submit Letters by April 15

Issuers looking to establish a crypto ETN program and list securities on the Main Market on the launch date must submit a letter to the LSE by April 15, 2024. This letter should outline how they meet the requirements for consideration as per the Crypto ETN factsheet and provide a draft of the base prospectus with relevant disclosures.

Furthermore, issuers must demonstrate compliance with the criteria for consideration, submit their admission application by April 15, 2024, and obtain FCA approval for their base prospectus by May 22, 2024, at noon.

The FCA’s willingness to accommodate requests from recognized investment exchanges (RIEs) to create a listed market segment for ETNs reflects a cautious yet progressive approach towards the emerging asset class. While the products will be available to professional investors only, this move signals a positive shift in the UK’s regulatory stance towards cryptocurrencies.

Overall, the introduction of the Crypto ETN market on the LSE signifies a significant step towards embracing digital assets and fostering a more crypto-friendly environment in the UK.

Author: Vignesh Karunanidhi

Milk Road Writer

Vignesh Karunanidhi is a seasoned professional in the crypto space with over 5 years of experience. He specializes in writing and editing various types of crypto content, focusing on blockchain technology and cryptocurrency.