Bitcoin and Ethereum ETNs will debut on the London Stock Exchange in May

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The London Stock Exchange (LSE), home to leading blue-chip stocks, will launch Bitcoin and Ethereum exchange-traded notes (ETNs) on May 28, according to an exchange announcement released today. The latest move comes after it was announced that the exchange will begin accepting payments. Applications for crypto ETNs In the second quarter of this year.

Companies interested in listing their Bitcoin and Ethereum ETNs on the LSE's brand new The market may begin to offer. theirs Applications on April 8, LSE confirmed.

With the appointment date, issuers will have time to meet detailed requirements and prepare necessary documents, including a prospectus that needs approval from the Financial Conduct Authority (FCA), LSE pointed out. The purpose of the exchange is to allow the maximum number of issuers to participate on the first day.

To be considered for the initial offering, issuers must submit a detailed letter and draft initial prospectus by April 15th, demonstrating that they meet the requirements outlined in the Crypto ETN Fact Sheet. The FCA's approval of these provisions is mandatory for ETNs to be listed on both the main market and the official list.

The LSE has made it clear that issuers that do not meet the required criteria or miss the submission and approval deadlines will not be able to participate in the launch of the LSE's Crypto ETN market.

Like exchange-traded funds (ETFs), ETNs also provide exposure to a basket of assets. However, these two differ in structure. An ETF is like a basket of stocks or other holdings. That's what he said. You are a partial owner. An ETN is an unsecured debt note issued by a bank. The bank uses the proceeds to invest in assets that track a specific index. of ETN value It reflects the performance of those assets.

When you buy a share of an ETF, you are getting a portion of the underlying. while assets Buying an ETN means lending your money to a bank in exchange for a note whose returns are based on the underlying index.

According to FCA regulations, coming Bitcoin and Ethereum ETNs will be restricted to “professional investors”. This means that credit institutions and investment companies are allowed to operate in Financial markets will be lonely able To participate, while retail investors are excluded.

A bid to increase profits?

According to a recent Bloomberg report, the LSE is facing challenges that threaten its position as a leading financial centre. The number of companies listed on the LSE has fallen sharply, with 2023 seen as the worst year for IPOs since 2009. Trading on the LSE Compared to pre-crisis levels, it has decreased significantly.

The report added that the LSE had fallen behind international rival exchanges. Several factors have contributed to the struggle, including changing investor preferences, competition from other exchanges and the regulatory landscape.

With increasing interest from institutional investors, the Digital The property market presents a huge opportunity for the LSE. This will attract if the exchange can create a regulated and secure environment for digital assets investment and Helping the UK keep its edge in the digital asset economy.

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