London Stock Exchange to Introduce Bitcoin and Ethereum ETN Market on May 28th

Beginning May 28th, the London Stock Exchange will create a market for Bitcoin (BTC) and Ethereum (ETH) exchange-traded notes (ETNs). On Monday, the biggest stock market in the United Kingdom released an announcement. Initially revealed plans stated that the London Stock Exchange would consider proposals for the entrance of Bitcoin and Ethereum Crypto ETNs to trading during the second quarter of 2024.

In a latest move, the London Stock Exchange has pushed the deadline for accepting applications to trade these crypto ETNs until April 8, 2024. However, the development of this market is subject to clearance from the UK regulator, the Financial Conduct Authority (FCA).

The decision to open the Crypto ETNs market on May 28, 2024, as mentioned in the London Stock Exchange notification, is intended to promote maximum issuer participation on the first trading day.

Issuers wanting to launch a Crypto ETN programme and list their securities on the main market must submit all necessary papers, including a basic prospectus, for FCA clearance by April 15, 2024.

ETNs, like Bitcoin ETFs, are traded on stock markets. However, ETNs are unsecured debt securities backed by the issuer’s credit, as opposed to ETFs, which are investment vehicles that actually own the assets they track, offering direct exposure. As a result, ETNs have credit risk that ETFs do not, because their value is determined by the issuer’s solvency, but ETF values are directly related to their underlying assets.

Bitcoin prices have risen dramatically, owing to a number of favourable developments in the market. Notably, huge inflows into Bitcoin ETFs, as well as expectations of a halving later this year, have helped to the surge.

Furthermore, the US Federal Reserve’s dovish position, combined with projections of three rate cuts in 2024, has spurred optimistic sentiment and pushed Bitcoin prices higher.

Bitcoin was trading at $70,580.24 at 2:20 p.m., up 5.48% in the previous 24 hours, according to Coindesk data. The token’s market valuation has risen to $1.39 trillion, representing a 67.11% growth year to far.