London Stock Exchange Sets May Launch for Bitcoin ETNs
LSE to start Bitcoin ETN trading in May, eyeing broad issuer participation
The London Stock Exchange (LSE) has announced it will start accepting applications for Bitcoin Crypto Exchange-Traded Notes (ETNs) from April 8, 2024. This follows an earlier announcement on March 11 about the exchange's plans to launch Crypto ETNs trading in Q2 2024.
The trading of these ETNs is expected to start on May 28, 2024, awaiting approval from the Financial Conduct Authority (FCA) for the base prospectuses.
This launch date is chosen to ensure a wide range of issuers can participate from day one, giving them enough time to get their documents in order and comply with regulatory demands.
The LSE aims to have a diverse group of issuers ready by the market opening, as stated in their notice, "We have decided to launch the market in Crypto ETNs on May 28, 2024, to enable the maximum number of issuers to be present in the market on the first day of trading."
Issuers interested in listing on the Main Market by May 28 must submit their applications by April 15. These applications should detail how the issuer or the ETN meets the Crypto ETN factsheet requirements, including a draft base prospectus for FCA review.
However, issuers not meeting these specifications, missing the April 15 deadline, or not getting their base prospectus approved by the FCA by May 22, 2024, will miss out on the initial trading day.
This initiative by the LSE to include Crypto ETNs signifies a notable step in merging cryptocurrency instruments with conventional trading platforms, highlighting the increasing mainstream acceptance and institutionalization of digital assets in the finance sector.
