London Stock Exchange to Allow Crypto ETN Trading in Policy Shift
• London Stock Exchange will start accepting applications for Bitcoin and Ethereum exchange-traded notes (ETNs) trading from May 2024.
• This signals a shift in the UK's cautious regulatory stance towards crypto assets that previously limited investment opportunities.
• ETNs differ from ETFs in that issuers don't have to purchase the underlying asset; they mirror its value instead.
• The UK banned derivatives and ETNs linked to unregulated digital assets, preventing investors from capitalizing on crypto price surges.
• Admission of Bitcoin ETNs expands LSE's tradable assets and reflects recalibration of UK’s regulatory approach to crypto after years of lost opportunities.