London Stock Exchange Accepts Applications for Bitcoin Exchange Trading Notes

The London Stock Exchange (LSE) has released its ‘Crypto ETN Approval Fact Sheet’ showing its decision to accept applications for Bitcoin exchange-traded notes (ETNs). The move comes as part of LSE’s efforts to expand its products and provide investors with exposure to Bitcoin.

Just arrived: 🇬🇧 Acceptance begins on the London Stock Exchange #Bitcoin Exchange trading notes application pic.twitter.com/h2XmzXqz2f

— Bitcoin Magazine (@BitcoinMagazine) March 11, 2024

Bitcoin exchange-traded notes are financial instruments that track the price of Bitcoin and are traded on traditional stock exchanges. By allowing the listing of Bitcoin ETNs, the LSE will provide investors with the opportunity to gain exposure to BTC through a regulated and friendly investment vehicle.

“The proposed cryptocurrency ETN (a) is physically backed, i.e., has no leverage; (b) has a trustworthy, publicly available market price or other measure of value of the underlying asset,” the fact sheet states. . “The underlying crypto assets must be (a) held wholly or primarily in ‘cold storage’3 (i.e. offline storage wallets), including (i) cold staking; or (ii) in an agreement that achieves the equivalent of: Must be refrigerated.”

The decision to accept applications for Bitcoin ETN reflects the growing demand for BTC investments among traditional investors and institutions. As Bitcoin continues to grow in popularity, traditional financial institutions are increasingly exploring ways to offer Bitcoin.

The LSE’s approval of the Bitcoin ETN application highlights the evolution of the regulatory environment surrounding Bitcoin. As regulatory clarity improves in many jurisdictions, institutions are becoming more comfortable offering BTC-related products to their customers.

Earlier this year, the U.S. Securities and Exchange Commission approved a spot Bitcoin exchange-traded fund (ETF), which turned out to be one of the most successful ETF launches in history. Last week, these ETFs had more than $33 billion in trading volume, according to Bloomberg ETF analyst James Seyffart.

Last week for Casual Week #Bitcoin ETF of CoinTucky Derby. Trading volume: $33 billion, inflow: $2.24 billion pic.twitter.com/bHEXG7Pzw3

— James Seyff (@JSeyff) March 11, 2024