The London Stock Exchange announced on Monday that it will begin accepting applications for the approval of Bitcoin and Ethereum cryptocurrency exchange-traded notes (ETNs) in the second quarter of this year.
LSE said: name We are accepting applications for the following: fact sheet Previously published. LSE said, “The exact release date will be confirmed soon.”
“To mitigate the risk of delays in approval times, the Exchange encourages early participation from potential issuers interested in accepting Crypto ETNs for trading on the Exchange,” the LSE added in its approval circular. According to the fact sheet, cryptocurrency ETNs are only available to professional investors.
This comes as the UK’s Financial Conduct Authority (FCA) said it would not oppose a proposal by the Chartered Investment Exchange (RIE) to create a listed market arm for cryptocurrency-backed exchange-traded notes (ETNs).
According to the document, ETNs are debt securities that provide exposure to underlying assets. Cryptocurrency ETNs allow investors to trade securities that track cryptocurrency assets on exchanges during London trading hours.
LSE’s move follows the United States’ lead Spot Bitcoin Exchange Traded Fund (ETF) have became popular Since its launch last January. Cumulative trading volume for U.S. spot Bitcoin ETFs on Friday surpassed $100 billion, reaching $106.59 billion, according to Yahoo Finance data compiled by The Block.
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