London Stock Exchange Opens Door to Crypto ETN Applications for Professional Investors – DL News

The London Stock Exchange proclaimed on Monday its readiness to start processing applications for exchange-traded notes tied to Bitcoin and Ethereum, signaling the introduction of a novel investment niche within the UK marketplace.

This development follows the Financial Conduct Authority’s declaration that it will not interpose in the listing of ETNs on recognized investment exchanges.

Access to these ETNs will be confined to professional investors only.

Contrasting the recently popularized direct Bitcoin exchange-traded funds in the US, ETNs are regarded as unsecured debt, though they provide investment asset exposure akin to ETFs. While ETFs denote ownership in the actual asset, ETNs operate as promissory notes and trade similarly to bonds than equities.

Despite Prime Minister Rishi Sunak’s ambition for the UK to evolve into a “crypto hub,” as he articulated in April 2022 during his tenure as the Chancellor of the Exchequer, the country has witnessed a measured pace in crypto acceptance.

Following this, only a few cryptocurrency firms have attained regulatory sanction. However, the FCA now seems to be warming up to cryptocurrency-based investment offerings.

According to the FCA’s Monday announcement, “It is imperative that exchanges maintain appropriate mechanisms ensuring orderly trading and the safeguarding of professional investors.”

The LSE reported it will start taking ETN listings in the subsequent quarter, yet a precise date of availability is to be announced.

Tyler Pearson, a junior markets journalist at DL News, reports from Alberta, Canada. For tips, reach out at ty@dlnews.com.