London Stock Exchange sets May 28 to launch Bitcoin, Ethereum ETN

The exchange will begin accepting applications on April 8.

The London Stock Exchange plans to launch cryptocurrency exchange-traded notes (ETNs) for Bitcoin (BTC) and Ethereum (ETH) on May 28.

In a notification on March 25, the exchange announced their plans and detailed other key dates. The London Stock Exchange will begin accepting applications from issuers on April 8. The Financial Conduct Authority (FCA) has until May 22 to make a decision on the basic prospectus for the first trading day.

To comply with the May 28 launch date, issuers must submit a letter by April 15 detailing how their ETN meets all requirements in the fact sheet and provide a draft of the underlying prospectus.

The exchange said they chose the launch date to allow as many issuers as possible to be listed on the first trading day. This date has been chosen to allow sufficient time for applicants to prepare relevant documentation and for the exchange to assess whether the issuer complies with the regulations.

The launch date of the crypto ETN will be dependent on the Financial Conduct Authority (FCA)’s approval of the base prospectus submitted by the applicant, as the agency is required to list crypto ETNs on its main market and official lists.

Previous expectations

On March 11, the London Stock Exchange said it would accept applications in the second quarter of 2024, but did not provide an exact date.

The exchange also provided a fact sheet detailing various requirements, including a ban on retail trading. The underlying funds must also be non-leveraged and actually backed by Bitcoin or Ethereum, with at least 90% stored in cold wallets or equivalent methods, and held by a qualified custodian.

The Financial Conduct Authority (FCA), which is independent of the London Stock Exchange, said on March 20 that it would not object to requests from recognized investment exchanges to create crypto ETNs.

The UK’s apparent willingness to allow cryptocurrency ETNs is noteworthy as these instruments offer professional investors in the country new ways to invest in cryptocurrencies.

Although cryptocurrency ETNs are similar to exchange-traded funds (ETFs) that track the price of the underlying cryptocurrency, they differ in many aspects of their design.

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