The London Stock Exchange (LSE) released a “Crypto-ETN Admission Information Sheet” outlining its decision to accept applications for Bitcoin exchange-traded notes (ETNs). The move is part of the LSE's efforts to expand its offering and provide investors with exposure to Bitcoin.
JUST IN: 🇬🇧 The London Stock Exchange will start accepting #Bitcoin applications for exchange-traded notes 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 exchanges. By allowing the listing of Bitcoin ETNs, the LSE would provide investors with the opportunity to gain exposure to BTC through regulated and familiar investment vehicles.
“The proposed Crypto ETN: (a) is physically backed, i.e. unleveraged; (b) has a market price or other measure of the value of the underlying that is reliable and accessible to the public,” the fact sheet states. “The underlying crypto-assets must be: (a) (i) wholly or mainly held in “cold storage”3 (i.e. in an offline custodial wallet), which includes cold staking; or (ii) subject to arrangements enabling an equivalent result to be obtained in a cold room.”
The decision to accept Bitcoin ETN applications reflects the growing demand for BTC investments among traditional investors and institutions. As Bitcoin's popularity continues to grow, traditional financial institutions are increasingly exploring ways to integrate it 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 offering BTC-related products to their clients.
Earlier this year, the U.S. Securities and Exchange Commission approved a batch of spot Bitcoin exchange-traded funds (ETFs), which turned out to be one of the most successful ETF launches in history . Last week, these ETFs generated more than $33 billion in trading volume, according to Bloomberg ETF analyst James Seyffart.
Casual week last week for the #Bitcoin ETF in the Cointucky Derby. $33 billion in volume and $2.24 billion in entries pic.twitter.com/bHEXG7Pzw3
–James Seyffart (@JSeyff) March 11, 2024