London Stock Exchange to Start Considering Bitcoin and Ethereum ETN Applications
Coinpeaker London Stock Exchange to Start Considering Bitcoin and Ethereum ETN Applications After the roaring success of spot Bitcoin ETFs within two months of launch in the US, other global markets have started exploring crypto investment products. The London Stock Exchange (LSE) has recently revealed its plans to start accepting applications for Bitcoin and Ether crypto exchange-traded notes (ETNs) from Q2 2024 onwards. Confirming this decision on March 11, the exchange outlined the application process based on the guidelines outlined in its Crypto ETN Admission Factsheet. However, the exchange has yet not communicated an exact commencement date for accepting applications. Exchange-traded notes (ETNs) are basically “debt securities offering exposure to an underlying asset”. Thus, crypto ETNs enable investors to trade securities mirroring the performance of crypto assets. However, these ETNs will trade only during the daily trading hours of the London Stock Exchange. Compared to exchange-traded funds (ETFs), ETNs are generally viewed as a more flexible alternative. Unlike ETFs, ETNs are debt instruments supported by their issuers rather than a collection of assets. ETFs commonly target complex debt strategies that may not readily align with traditional funds. According to the factsheet, the London Stock Exchange (LSE) stipulates that crypto ETNs must be physically backed and non-leveraged.