London Stock Exchange to Debut Bitcoin and Ether ETNs by 2024

In a landmark move for the financial sector, the London Stock Exchange (LSE) is gearing up to integrate digital assets into its offerings. By Q2 2024, the LSE is set to greenlight the listing of crypto exchange-traded notes (ETNs), with a focus on prominent cryptocurrencies, Bitcoin and Ether. This decision marks a significant step towards the institutional adoption of cryptocurrencies and presents a fresh investment vehicle for professional investors seeking exposure to these digital currencies. The planned ETNs will offer direct, non-leveraged tracking of the respective cryptocurrency prices during normal trading hours, ensuring they mirror the actual performance of Bitcoin and Ether. This integration underscores the growing legitimacy and potential of cryptocurrencies within the traditional financial environment.

Regulated Introduction of Crypto ETNs

As part of the LSE’s forward-looking initiative, these instruments must be physically backed, meaning they will be directly tied to actual holdings of Bitcoin and Ether. In response to concerns over the security of digital assets, the LSE is adamant that these holdings be predominantly managed through cold storage solutions — secure, offline vaults that greatly reduce the risk of hacking and theft. Furthermore, compliance is a cornerstone of this undertaking; the custodians entrusted with managing these assets are required to adhere to Anti-Money Laundering regulations and be situated in recognized jurisdictions that provide an additional layer of oversight and confidence.

With the rigorous precautions set by the LSE, the ETNs will offer a structured option for professional investors to participate in the cryptocurrency market without the direct risks associated with holding or transferring the digital currencies themselves. This provision serves both to allay institutional anxieties about the wild frontier of crypto assets and to pave the way for a controlled and responsible integration of these tools into the broader financial framework.

FCA’s Stance on Crypto ETNs

The UK’s Financial Conduct Authority (FCA) mirrors the LSE in cautiously embracing crypto-backed ETNs for professional investors. This regulatory move widens Recognised Investment Exchanges’ scope, but with tight safeguards in place to mitigate the high risks associated with cryptocurrencies. The FCA has set clear boundaries to shield retail investors, who are warned about the potential for significant losses when dealing with crypto assets.

This careful balance highlights the FCA’s commitment to protecting investors while accommodating innovation within the financial sector. By incorporating crypto assets into recognized exchanges, the FCA takes a pivotal step in integrating these digital assets into professional investment realms without compromising safety standards. The measured acceptance signals a progressive but guarded assimilation of cryptocurrency into the mainstream financial landscape.

Explore more

Can AI Redefine C-Suite Leadership with Digital Avatars?

I’m thrilled to sit down with Ling-Yi Tsai, a renowned HRTech expert with decades of experience in leveraging technology to drive organizational change. Ling-Yi specializes in HR analytics and the integration of cutting-edge tools across recruitment, onboarding, and talent management. Today, we’re diving into a groundbreaking development in the AI space: the creation of an AI avatar of a CEO,

Cash App Pools Feature – Review

Imagine planning a group vacation with friends, only to face the hassle of tracking who paid for what, chasing down contributions, and dealing with multiple payment apps. This common frustration in managing shared expenses highlights a growing need for seamless, inclusive financial tools in today’s digital landscape. Cash App, a prominent player in the peer-to-peer payment space, has introduced its

Scowtt AI Customer Acquisition – Review

In an era where businesses grapple with the challenge of turning vast amounts of data into actionable revenue, the role of AI in customer acquisition has never been more critical. Imagine a platform that not only deciphers complex first-party data but also transforms it into predictable conversions with minimal human intervention. Scowtt, an AI-native customer acquisition tool, emerges as a

Hightouch Secures Funding to Revolutionize AI Marketing

Imagine a world where every marketing campaign speaks directly to an individual customer, adapting in real time to their preferences, behaviors, and needs, with outcomes so precise that engagement rates soar beyond traditional benchmarks. This is no longer a distant dream but a tangible reality being shaped by advancements in AI-driven marketing technology. Hightouch, a trailblazer in data and AI

How Does Collibra’s Acquisition Boost Data Governance?

In an era where data underpins every strategic decision, enterprises grapple with a staggering reality: nearly 90% of their data remains unstructured, locked away as untapped potential in emails, videos, and documents, often dubbed “dark data.” This vast reservoir holds critical insights that could redefine competitive edges, yet its complexity has long hindered effective governance, making Collibra’s recent acquisition of