London Stock Exchange sets May 28 launch date for Bitcoin, Ethereum ETNs

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The London Stock Exchange said in a March 25 notice that it plans for Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) to begin trading on May 28.

The latest announcement also details other key dates. The London Stock Exchange will begin accepting applications for admission from issuers on April 8. The FCA must also decide on base prospectuses that intend to launch on the first day of trading by May 22.

Issuers aiming for the May 28 launch date must submit a letter detailing how their ETN satisfies all requirements in a factsheet plus a base prospectus draft by April 15.

The exchange said its chosen launch date would allow the maximum number of issuers to be present on the first trading day. That date will give applicants time to prepare relevant documentation and allow the exchange to evaluate whether issuers satisfy requirements.

The launch date depends on the Financial Conduct Authority (FCA) approving base prospectuses from applicants, as the authority must list crypto ETNs on its Main Market and Official List.

Earlier expectations

On March 11, the London Stock Exchange said it would accept applications in the second quarter of 2024 but did not provide a precise date.

It also provided a factsheet detailing various requirements, including a block on retail trading. Relevant funds must also be non-leveraged and physically backed by Bitcoin or Ethereum, held at least 90% in cold storage or an equivalent method, and kept with a qualified custodian.

Independent from the London Stock Exchange, the FCA said on March 20 that it would not object to requests to create crypto ETNs from Recognised Investment Exchanges.

The UK’s apparent willingness to permit crypto ETNs is notable as these vehicles provide professional investors in the country with new ways to invest in crypto.

Though crypto ETNs are similar to exchange-traded funds (ETF) in that they track the price of the underlying crypto, they otherwise differ in many aspects of their design.

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