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London Stock Exchange Embraces Digital Assets by Accepting Crypto ETN Applications

In a pivotal announcement, the London Stock Exchange (LSE) announced its intention to accept Bitcoin and Ethereum exchange-traded note (ETN) applications, signaling a significant shift towards the integration of digital currencies into traditional financial markets.
LSE Announces Acceptance of Crypto ETNs

The launch of the Bitcoin (BTC) and Ethereum (ETH) ETNs on the LSE platform marks a crucial development for investors seeking regulated pathways into the rapidly evolving crypto sector. These instruments are designed to track the price movements of Bitcoin and Ethereum, creating a link between the dynamic prices of cryptocurrencies and the traditional stock market structure.

“The proposed Crypto ETN: (a) is physically backed, that is, without leverage; (b) has a market price or other measure of the value of the underlying that is reliable and publicly available”, highlights the focus on security and transparency of this innovative product. The fact sheet details also emphasize the protection of assets through cold storage, thereby increasing investor confidence in the sustainability and security of these offerings against online risks.

This decision by the LSE to adopt crypto ETNs reflects the evolving regulatory landscape and the growing acceptance of crypto assets in the financial sector. This comes after the UK Financial Conduct Authority (FCA) indicated its openness to cryptocurrency-related ETNs.

Mikkel Morch, founder of digital asset investment fund Ark36, spoke to News, stating that the rise in Bitcoin prices to all-time highs coincides with the FCA facilitating the introduction of crypto-connected exchange-traded products.

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