London Stock Exchange to Launch Bitcoin and Ethereum ETN Market on May 28
The London Stock Exchange (LSE) has disclosed plans to introduce a market for exchange-traded notes (ETNs) based on Bitcoin (BTC) and Ethereum (ETH) on May 28, 2024.
This announcement follows the LSE’s previous notice on March 11, 2024, which stated that the exchange would accept applications for admission to trading of Bitcoin and Ethereum Crypto ETNs in the second quarter of 2024.
Key points:
- Applications for crypto ETN trading can be made from April 8, 2024.
- The launch is subject to the approval of the base prospectuses by the Financial Conduct Authority (FCA).
- Issuers must submit details on how they meet the requirements for consideration by April 15, 2024.
- The FCA must approve issuers’ base prospectuses by midday on May 22, 2024, in order for them to participate in the first day of trading.
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The London Stock Exchange has decided to launch the Bitcoin and Ethereum ETN markets on May 28, 2024, to enable the maximum number of issuers to be present on the first day of trading.
The exchange has taken into account that issuers must meet the requirements for consideration outlined in the Crypto ETN factsheet and prepare the necessary documentation to establish a Crypto ETN program, which will necessitate FCA approval of a base prospectus.
Bitcoin and Ethereum ETN issuers must submit letters by April 15
Issuers proposing to establish a crypto ETN program to list securities on the Main Market on the launch date must submit a letter to the LSE by April 15, 2024. In addition, the letter must detail how they meet the requirements for consideration outlined in the Crypto ETN factsheet. They must also provide a draft of the base prospectus, highlighting where disclosure of these matters is included.
Issuers must demonstrate to the LSE that they have met the criteria for consideration, submit their application for admission by April 15, 2024, and have the FCA approve their base prospectus by May 22, 2024, at noon.
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The introduction of the Crypto ETN market on the LSE comes as regulators in the United Kingdom move to make the country more crypto-friendly. Additionally, the U.K. government has made several announcements in recent months, expressing its intention to make the country a global hub for cryptocurrency innovation and investment.
The FCA has also stated that it will not turn down requests from recognized investment exchanges (RIEs) to create a listed market segment for ETNs. However, the products will only be available to professional investors, indicating a cautious approach to the nascent asset class.
