The London Stock Exchange (LSE) released a “crypto ETN admission factsheet” showcasing its decision to accept applications for Bitcoin exchange-traded notes (ETNs).
The move comes as part of the LSE’s efforts to expand its offerings and provide investors with exposure to bitcoin.
Bitcoin exchange-traded notes are financial instruments that track the price of Bitcoin and are traded on traditional stock exchanges.
By allowing the listing of Bitcoin ETNs, the LSE would be providing investors with an opportunity to gain exposure to BTC through regulated and familiar investment vehicles.
“The proposed Crypto ETN: (a) is physically backed, i.e. non-leveraged; (b) has a market price or other value measure of the underlying that is reliable and publicly available,” the factsheet stated.
“The underlying crypto assets must be: (a) (i) wholly or principally held in ‘cold storage’ (i.e. in an offline depositary wallet), which includes cold staking; or (ii) subject to arrangements that achieve an equivalent outcome to cold storage.”
Read more: bitcoinworld.co.in
