The London Stock Exchange (LSE) recently announced that it will begin accepting applications for the admission of Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) in Q2, 2024. While the exact launch date is yet to be disclosed, the LSE plans to reveal it “in due course,” with applications being accepted based on the details provided in the crypto ETN factsheet.

According to the factsheet, crypto ETNs will be available for trading on the LSE exclusively for professional investors and will be listed under designated trading segments. Issuers will have the option to offer up to three different currency lines for each crypto ETN.

The document also specifies that the custody of underlying crypto for ETNs must primarily be in cold storage, with custodians required to comply with anti-money laundering regulations in jurisdictions such as the U.K., E.U., Jersey, Switzerland, or the U.S.

Following the announcement, the price of Bitcoin surged above $71,000, while Ethereum rose above $4,000. However, the impact of LSE’s decision on the price appreciation remains unclear.

This move by the London Stock Exchange towards embracing web3 is not entirely new, as the stock exchange has been exploring the potential applications of blockchain technology, including the integration of blockchain-based trading for traditional financial assets. In September 2023, the London Stock Exchange Group revealed plans to introduce blockchain-based trading for traditional financial assets, highlighting a strategic shift towards leveraging blockchain in traditional markets.

For more updates and news on cryptocurrencies and finance, visit Global Crypto News.

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