The London Stock Exchange (LSE) released a “crypto ETN admission factsheet” showcasing its decision to accept applications for Bitcoin exchange-traded notes (ETNs). The move comes as part of the LSE’s efforts to expand its offerings and provide investors with exposure to bitcoin.
JUST IN: 🇬🇧 London Stock Exchange to start accepting #Bitcoin exchange traded note applications 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 would be providing investors with an opportunity to gain exposure to BTC through regulated and familiar investment vehicles.
“The proposed Crypto ETN: (a) is physically backed, i.e. non-leveraged; (b) has a market price or other value measure of the underlying that is reliable and publicly available,” the factsheet stated. “The underlying cryptoassets must be: (a) (i) wholly or principally held in ‘cold storage’3 (i.e. in an offline depositary wallet), which includes cold staking; or (ii) subject to arrangements that achieve an equivalent outcome to cold storage.”
The decision to accept applications for Bitcoin ETNs reflects the growing demand for BTC investments among traditional investors and institutions. As the popularity of Bitcoin continues to rise, traditional financial institutions are increasingly exploring ways to incorporate them into their offerings.
The acceptance of Bitcoin ETN applications by the LSE also highlights the evolving regulatory landscape surrounding Bitcoin. With regulatory clarity improving in many jurisdictions, institutions are becoming more comfortable with offering BTC-related products to their clients.
Earlier this year, the United States Securities and Exchange Commission approved a batch of spot Bitcoin Exchange Traded Funds (ETFs), which turned out of be some of the most successful ETF launches in history. Just last week, these ETFs did over $33 billion in trading volume, according to Bloomberg ETF analyst James Seyffart.
Casual week last week for the #Bitcoin ETFs in the Cointucky Derby. $33 Billion in volume and $2.24 Billion in inflows pic.twitter.com/bHEXG7Pzw3
— James Seyffart (@JSeyff) March 11, 2024