London Stock Exchange to launch Bitcoin and Ethereum ETN market on May 28

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Also Read: Bitcoin spikes 5% as cryptos continue to surprise investors. What lies ahead for digital currencies? However, the market will be subject to the approval of the UK regulator, the Financial Conduct Authority (FCA). “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," the London Stock Exchange notice said.

Issuers that are proposing to establish a Crypto ETN programme to list their securities on the main market must submit the necessary documentation, including a base prospectus for FCA approval, latest by April 15, 2024. Exchange Traded Notes or ETNs are also traded on a stock exchange similar to Bitcoin Exchange Traded Funds (ETFs). However, ETNs are unsecured debt securities that are backed by the issuer’s credit, while ETFs are investment funds directly holding the assets they track, providing direct exposure.

Consequently, ETNs entail credit risk absent in ETFs, given their value hinges on the issuer’s solvency, while ETF values are directly linked to their underlying assets. Also Read: Standard Chartered raises year-end target of Bitcoin to $1,50,000 Bitcoin prices have seen a sharp rally boosted by a slew of positive developments in the sector. The primary factor leading to gains in cryptocurrency prices is the strong inflows in the Bitcoin ETFs and the expectations of Bitcoin halving later this year.

The dovish commentary by the US Federal Reserve and the expectation of the central bank of three rate cuts in 2024 saw bulls pumping Bitcoin prices. At 2:20 pm, Bitcoin price was trading at $70,580.24, 5.48% higher over the past 24 hours, as per Coindesk data. The token’s market capitalization