By Susie Violet Ward · Forbes · 28 March 2024
In March 2024, the London Stock Exchange announced that it would accept applications to admit bitcoin and ether exchange traded notes, with trading expected from 28 May 2024 if the prospectuses were approved. Unlike ETF issuers, ETN issuers are not usually required to hold the underlying asset, although the exchange’s guidance asked applicants to do so.
The article argues that the Financial Conduct Authority’s ban on selling crypto ETNs and derivatives to retail investors had left UK investors on the sidelines during earlier bull runs, while the US, Germany, Singapore and Hong Kong moved ahead with institutional adoption. It reports industry concern that restrictive rules had pushed crypto businesses out of the UK, and expresses the hope that the FCA would reconsider its retail ban.