The London Stock Exchange has announced it will launch Bitcoin and Ethereum ETNs.
You can read the full notice here: https://docs.londonstockexchange.com/sites/default/files/documents/n0324.pdf
An ETN (Exchange-Traded Note) is a type of investment product issued by a bank that tracks the performance of a specific asset or index, like stocks or commodities, but doesn’t actually own them.
Subject to the approval by the Financial Conduct Authority (the “FCA”) of the base
https://docs.londonstockexchange.com/sites/default/files/documents/n0324.pdf
prospectuses, which will be required to list Crypto ETNs on the Main Market and also to the
Official List of the FCA, the Exchange is proposing that the first day of admission to trading of
those Crypto ETN securities will be Tuesday 28 May 2024.
Key points from the Market Notice:
- Bitcoin and Ethereum Exchange Traded Notes (ETNs) admission announced by the London Stock Exchange.
- Applications for admission open from April 8, 2024.
- First day of trading proposed to be on May 28, 2024, pending approval from the Financial Conduct Authority (FCA).
- Launch date chosen to facilitate maximum issuer participation and ensure compliance with requirements.
- Issuers planning to list Crypto ETN securities on May 28, 2024, must submit required information by April 15, 2024.
- Failure to meet requirements will result in issuers being unable to participate in initial trading of Crypto ETNs.
What are the benefits of an Exchange Traded Note?
Accessibility
When an exchange lists an Exchange Traded Note (ETN), it becomes accessible to a wide range of investors. This includes individual traders, institutional investors, and anyone else who uses that exchange.
Liquidity
Listing an ETN on an exchange can increase its liquidity. Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. More liquidity generally means tighter bid-ask spreads and smoother trading.
Visibility and Exposure
Being listed on a popular exchange increases the visibility of the ETN. More people see it, learn about it, and potentially invest in it. This exposure can attract new investors and increase trading volume.
Credibility
Exchange listings can enhance the credibility of an ETN. Investors often perceive assets listed on reputable exchanges as more trustworthy and legitimate. This can help attract institutional investors and larger market participants.
Market Efficiency
Exchange listings contribute to market efficiency by providing a centralized platform for trading. This allows buyers and sellers to easily transact with each other, leading to fairer pricing and efficient allocation of capital.
In summary, listing an ETN on an exchange provides accessibility, liquidity, visibility, credibility, and contributes to market efficiency, all of which can benefit investors and the issuer of the ETN.
Yield Reviews Opinion:
The London Stock Exchange (LSE) is one of the oldest and most prominent stock exchanges in the world, which plays a significant role in global finance. Listing crypto is a huge step forward to make it more widely accepted and we expect further expansion of crypto related financial products in the UK over the coming months and years.
