Crypto-backed exchange-traded notes (ETNs) have been eagerly anticipated by crypto enthusiasts, and traditional investors who have reservations about using regular avenues for crypto. 

Now, after announcing its plans to welcome exchange-traded products onto the LSE, a recent market notice issued confirms that the LSE will commence trading for Bitcoin and Ether ETNs on 28 May, 2024. 

According to the LSE, applications for trading these crypto ETNs will be accepted starting 8 April, subject to approval from the Financial Conduct Authority (FCA). This includes details demonstrating compliance with the criteria outlined in the crypto ETN factsheet and a draft of the base prospectus highlighting relevant disclosures.

“We have decided to launch the market in Crypto ETNs on 28 May 2024 to enable the maximum number of issuers to be present in the market on the first day of trading,” read the LSE notice. 

“In choosing this date we have taken into consideration that we need to ensure that issuers meet the requirements for consideration detailed in the Crypto ETN factsheet and importantly, it will also enable those issuers planning on admitting securities on the launch date, time to prepare documentation to establish a Crypto ETN programme which will require a base prospectus to be approved by the FCA.”

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The decision to introduce a marketplace for bitcoin and ether ETNs follows the FCA’s earlier declaration permitting Recognized Investment Exchanges (RIEs) to establish a listed market segment for ETNs. These products will be accessible exclusively to professional investors, much to the chagrin of some in the crypto sphere. 

In a searing commentary on the exclusion of retail investors from this new purview, Cryptodaily likened the move to keep these products available only to professional investors as “the ultimate tool to keep everyone locked in the burning building,” of central banks. 

However, the move can also be seen as an effort to facilitate a more crypto-friendly environment in the UK, while at the same time, protect customers from prevalent scams and fraud in the crypto market.