According to a report on March 25, the London Stock Exchange will accept applications to list exchange-traded bonds ETN Bitcoin and Ethereum from April 8.
It is expected that the first trading day of cryptocurrency ETN certificates will take place on Tuesday, May 28, after the Financial Conduct Authority (FCA) approves the necessary documents of the issuing business. (including investment companies and credit institutions licensed or regulated to operate in the financial market).
Bitcoin ETN (Exchange Traded Note) listed by the London Stock Exchange differs from the US Bitcoin ETF in that ETNs are an unsecured debt security similar to bonds. It tracks the performance of Bitcoin, but does not own the actual Bitcoin. ETN promises to pay investors a profit based on the price of Bitcoin at a certain point in the future.
Meanwhile, Bitcoin ETF (Exchange Traded Fund) is an investment fund that tracks the price of Bitcoin. The ETF owns the actual Bitcoin and splits the Bitcoin ownership into shares. When users buy Bitcoin ETF shares, they are purchasing a small portion of the fund and indirectly own Bitcoin.
Some of the requirements put forward by the LSE to issuers include, no support for leverage; demonstrate transparent and public storage value; Store assets in cold wallets and are closely monitored by UK or EU anti-money laundering (AML) compliance agencies.
Bitcoin and Ethereum ETNs will not be approved in cases where listing requirements are not met, listing applications are submitted after April 15, 2024, or prospectuses have not been approved by the FCA before 12:00 on April 22. 5.
Currently, authorities in the UK are loosening regulations to create a more cryptocurrency-friendly environment, in line with the government's recent statements to turn the country into a major cryptocurrency hub. leader in the market.
The London Stock Exchange's approval of cryptocurrency ETNs after the SEC's approval of the Bitcoin ETF is expected to bring positive effects to the market now and in the future.
