The London Stock Exchange (LSE) has taken a step by announcing in a press release its plan to accept applications for Bitcoin and Ethereum exchange-traded notes (ETN) from Q2 2024.
Application Process and Guidelines
Set to announce the precise launch date soon, the LSE has outlined the operational framework through a detailed crypto ETN factsheet. This initiative targets professional investors, specifying unique trading segments for the ETNs and offering a structured entry into digital asset trading.
Emphasizing security, the LSE mandates that a significant portion of the ETN underlying crypto assets be secured in cold storage. This measure, coupled with stringent anti-money laundering standards applicable in several major jurisdictions, showcases the LSE’s dedication to secure and compliant trading practices.
The LSE’s foray into digital assets is not entirely unexpected. The exchange has been actively exploring the integration of blockchain technology into traditional trading mechanisms. Notably, in September 2023, the LSE Group disclosed its initiative to integrate blockchain for trading conventional financial assets.
Following this announcement, the cryptocurrency market reacted positively, with Bitcoin’s value surging past $71,000 and Ethereum exceeding $4,000. Although the direct impact of the LSE’s decision on this price surge is speculative, the correlation underscores the market’s optimism towards mainstream financial platforms embracing digital currencies.