London Stock Exchange Will Launch Bitcoin And Ether ETN Market On May 28

Updated: 26 March 2024

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Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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The London Stock Exchange (LSE) will open a market for Bitcoin (BTC) and Ethereum (ETH) exchange-traded notes (ETNs) on May 28, it said in a Mar. 25 announcement.

The LSE has chosen to launch the crypto ETN market on May 28 to ensure that the “maximum number of issuers” are present during the market’s first day of trading, it said.

This will also give issuers enough time to prepare the necessary documentation and meet regulatory requirements. Applications for the admission can be submitted from Apr. 8.

Issuers Need To Submit Applications To The London Stock Exchange By Apr. 15

Issuers looking to list securities on the Main Market on May 28 will need to submit all of the necessary information to the LSE by Apr. 15.

This information will include details regarding how the issuer will meet the requirements listed in the crypto ETN factsheet. A draft of the base prospectus highlighting the relevant disclosures will also need to be sent.

Any issuers that fail to meet the requirements, do not submit their applications before or on Apr. 15, or fail to get their base prospectus approved by the FCA by noon May 22, will not be able to participate in the first day of trading.

FCA Open To Crypto ETNs

Crypto ETNs will only be made available to professional investors, said the LSE in a Mar. 11 announcement. Only investment firms and credit institutions will be allowed to take part as the LSE believes these products are “ill-suited” for retail investors.

The march of #cryptocurrencies in the markets continues. Today the Financial Conduct Authority @TheFCA has announced that trading can commence for crypto backed #ETNs – but only for professional investors due to their high level of risk.https://t.co/MxhBTiCI4p

— Dean Armstrong KC (@ArmstrongDean) March 11, 2024

The decision by the LSE follows a Mar. 11 statement by the UK’s Financial Conduct Authority (FCA) that indicated it was open to receiving requests from Recognized Investment Exchanges (RIEs) to create a listed market segment for crypto ETNs.

Cryptocurrencies have traded long enough for investors to determine their risk appetite for crypto ETNs, the regulator said.