Bitcoin And Ethereum ETNs Get Nod From London Stock Exchange
The London Stock Exchange will accept applications for Bitcoin and Ethereum Exchange Traded Notes (ETNs) in Q2 2024, following the UK FCA's approval. ETNs must be physically backed, non-leveraged, and have reliable market prices. The underlying crypto assets must be held in cold storage or equivalent security arrangements, and custody must comply with AML regulations. The LSE reserves the right to refuse any application. These ETNs are exclusively for professional investors and aim to mitigate crypto asset volatility and security risks. The LSE encourages early engagement from prospective issuers to facilitate the admission process. This move offers European professional investors regulated avenues to engage with digital assets. The Bitcoin price surged above $71,000 after the announcement.
