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The UK's main stock exchange is set to start accepting applications for cryptocurrency-linked exchange-traded notes.
The London Stock Exchange (LSE) revealed in a bitcoin-and-ethereum-etns-66tuep2iac04hnc.html” target=”_blank” rel=”noreferrer noopener”>Press release on March 11 will begin accepting applications for the admission of bitcoin (btc) and ethereum (eth) exchange-traded notes (ETN) in the second quarter of 2024. Although the exact launch date remains unclear, as the LSE plans to reveal “In due course,” the exchange noted that it plans to accept applications in accordance with the details contained in the crypto ETN fact sheet.
According to the fact sheet, crypto ETNs will be allowed to trade on the LSE only for professional investors and are in designated trading segments. Issuers could offer up to three different currency lines for each crypto ETN, the fact sheet reads.
The document also states that custody of the underlying cryptocurrencies for ETNs should primarily be in cold storage. While the LSE does not elaborate on this matter, it added that custodians must comply with anti-money laundering regulations in jurisdictions such as the UK, EU, Jersey, Switzerland or the US after it became known news, bitcoin price quickly jumped above $71,000. , while eth skyrocketed above $4,000. However, it is unclear whether the LSE's move had an effect on price appreciation.
For the London Stock Exchange, the latest step towards web3 adoption is not entirely novel, as the stock exchange has been exploring the potential applications of blockchain technology, including the possibility of facilitating blockchain-based trading for traditional financial assets for some time. For example, in September 2023, the London Stock Exchange Group revealed plans to introduce blockchain-based trading for traditional financial assets, citing a strategic shift driven by the potential benefits of integrating blockchain into traditional markets.
