The London Stock Exchange (LSE) released a “crypto ETN admission sheet” showing your decision to accept applications for bitcoin exchange-traded notes (ETNs). The move comes as part of the LSE's efforts to expand its offering and give investors exposure to bitcoin.
ONLY IN: The London Stock Exchange will begin accepting bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin applications for exchange traded notes pic.twitter.com/h2XmzXqz2f
– bitcoin Magazine (@BitcoinMagazine) March 11, 2024
bitcoin exchange-traded notes are financial instruments that track the price of bitcoin and are traded on traditional stock exchanges. By allowing the listing of bitcoin ETNs, the LSE would provide investors with the opportunity to gain exposure to btc through regulated and family-owned investment vehicles.
“The proposed crypto ETN: (a) is physically backed, i.e., unleveraged; (b) has a market price or other measure of value of the underlying that is reliable and publicly available,” the fact sheet states. “The underlying cryptoassets must be: (a) (i) held wholly or primarily in 'cold storage'3 (i.e., in an offline depository wallet), which includes cold staking; or (ii) subject to agreements that achieve a result equivalent to cold storage.”
The decision to accept applications for bitcoin ETNs reflects the growing demand for btc investments among traditional investors and institutions. As bitcoin's popularity continues to rise, traditional financial institutions are increasingly exploring ways to incorporate them into their offerings.
The acceptance of bitcoin ETN applications by the LSE also highlights the evolving regulatory landscape surrounding bitcoin. With regulatory clarity improving in many jurisdictions, institutions are becoming more comfortable offering btc-related products to their clients.
Earlier this year, the United States Securities and Exchange Commission approved a batch of spot bitcoin exchange-traded funds (ETFs), which turned out to be some of the most successful ETF launches in history. Last week alone, these ETFs generated more than $33 billion in trading volume, according to Bloomberg ETF analyst James Seyffart.
Informal week last week for the bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF in the Cointucky Derby. $33 billion in volume and $2.24 billion in tickets pic.twitter.com/bHEXG7Pzw3
-James Seyffart (@JSeyff) March 11, 2024
