The London Stock Exchange Group announced a new level of integration of Bitcoin and Ethereum into the global financial market, adding BTC and ETH exchange-traded notes to the LSE. As Alex Pollak, the head of UK for 21Shares, pointed out, this may put the UK firmly on the map and make it the crypto hub of Europe.
As Yahoo Finance reported, these ETNs will be common in trading and settle like shares, but their value will depend on Bitcoin or Ethereum accordingly. This is not far from the spot Bitcoin exchange-traded funds (ETFs) that the US Securities and Exchange Commission (SEC) recently deliberated and approved in January.
From Pollak’s words, it is clear that listing these Bitcoin and Ethereum ETNs in the LSE is a major step in expanding the cryptocurrency market for investors within the United Kingdom. This move enhances the UK’s market share in the global crypto market and enables more investors to explore a new way to invest uninterruptedly.
ETPs are listed, but not for everyone
Pollak, who took up a UK head of for 21Shares, has warned that the Bitcoin and Ethereum ETN on the LSE will only target professional investors since the UK has prohibited the domestic sales of such crypto-linked securities to the retail public. Nevertheless, he opines that removing this retail ban should snowball into a revolution for the UK crypto trading markets.
CryptoUK is an association of companies in the British digital asset market. It reported that it has no complaints about the FCA’s decision.
The decision allows certain providers to offer Bitcoin and Ethereum investments. Exchange-traded products listed on the London Stock Exchange will offer them. In October 2022, Rishi Sunak, then-chancellor and now UK Prime Minister, announced the UK’s intention. Due to emerging fintech solutions, he aimed to make the UK a ‘global crypto hub.’
Nevertheless, it has failed to match other jurisdictions’ successful initiatives in adopting crypto-linked securities, as it is still considered one of the last major markets that have not allowed trading-related products.
On the other hand, the US Securities Exchange Commission (SEC) granted the first US Bitcoin spot ETF listing in January, while Hong Kong launched spot Bitcoin and Ethereum ETF in the stock market. Currently, some expectations adopting ETNs and ETFs provide a framework through which conventional investments would be diversified into cryptocurrencies.
