London Stock Exchange to Launch Bitcoin and Ethereum ETNs
The London Stock Exchange (LSE) has announced the upcoming launch of a market dedicated to Exchange-Traded Notes (ETNs) for Bitcoin and Ethereum. This new market segment, scheduled for May 28th, follows the increasing interest of traditional financial institutions in cryptocurrencies.
London Stock Exchange: A Key Step for Institutional Investors in Europe
Starting April 8th, the LSE will begin accepting applications for trading these crypto ETNs, marking a significant milestone towards the integration of cryptocurrencies into conventional financial circuits.
This initiative is supported by the UK Financial Conduct Authority (FCA), which has previously expressed its willingness to not oppose the creation of listed market segments for ETNs by Recognised Investment Exchanges (RIEs).
Crypto Regulation in the UK
The establishment of this market is subject to final approval from the FCA, although they have already shown support. The products, exclusively targeting professional investors, demonstrate a selective approach aimed at gradually integrating cryptocurrencies while managing associated risks. This regulated and targeted environment could foster greater institutional adoption of cryptocurrencies in the UK.
This announcement is part of a series of measures taken by the British government to establish the country as a cryptocurrency hub. The regulators in the country are thus demonstrating their willingness to make the UK more attractive to crypto companies and investors, with the hope of stimulating financial innovation and attracting international talent and capital.
