The London Stock Exchange (LSE) has issued a “Crypto ETN Acceptance Fact Sheet” outlining its decision to accept orders for exchange-traded securities (ETNs). The move comes as part of the LSE's efforts to expand its offerings and provide investors with exposure to Bitcoin.
Only at: 🇬🇧 London Stock Exchange to start accepting #Bitcoin Exchange applications for common notes pic.twitter.com/h2XmzXqz2f
– Bitcoin Magazine (@BitcoinMagazine) March 11, 2024
Bitcoin ETFs are financial instruments that track the price of Bitcoin and are traded on traditional exchanges. By allowing the listing of Bitcoin ETNs, the LSE will provide investors with exposure to BTC through regulated and familiar investment vehicles.
“The proposed exchange-traded cryptocurrency (ETN): (a) is physically backed, i.e., not leveraged; (b) has a market price or other value measure of the underlying basis that is reliable and available to the public,” the fact sheet said. “The underlying cryptoassets must be: (a) (i) held wholly or primarily in “cold storage”3 (i.e., in an offline deposit wallet), which includes cold storage; or (ii) subject to arrangements that achieve a similar result For cold storage.
The decision to accept applications for Bitcoin ETNs reflects the growing demand for BTC investments among traditional investors and institutions. As Bitcoin continues to rise in popularity, traditional financial institutions are increasingly exploring ways to integrate it into their offerings.
The acceptance of Bitcoin ETN applications by the London Stock Exchange also highlights the evolving regulatory landscape surrounding Bitcoin. With improved regulatory clarity in many jurisdictions, institutions have become more comfortable offering Bitcoin-related products to their clients.
Earlier this year, the US Securities and Exchange Commission approved a group of Bitcoin exchange-traded funds (ETFs), which turned out to be some of the most successful ETFs in history. Just last week, these ETFs generated more than $33 billion in trading volume, according to Bloomberg ETF analyst James Seyphart.
Unofficial week last week for #Bitcoin Quintake Derby ETFs. $33 billion in volume and $2.24 billion in inflows pic.twitter.com/bHEXG7Pzw3
– James Seyff (@JSeyff) March 11, 2024
