LSE to start accepting applications for crypto ETNs

The London Stock Exchange (LSE) announced last week that it will soon begin accepting applications (from April 8) for the admission to trading of bitcoin and ethereum Exchange Trade Notes (ETNs), with a view to them starting to be listed on May 28.

ETNs are debt securities that provide exposure to an underlying asset. Traditionally, ETNs are unsecured and investors must trust that the issuer will deliver. However, as described in its ETN Admissions Fact Sheet, the Exchange will only consider applications for admissions that are physically backed, with the underlying (crypto) assets held in cold storage.

Availability will be limited to professional investors only. Retail investors (at this time) will not be able to purchase these ETNs if they are listed. However, the potential listing of crypto ETNs on the London Stock Exchange brings the UK closer to other developed countries that already offer a range of crypto exchange-traded products.

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