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Bitcoin ETNs debut on the London Stock Exchange
Watch: Bitcoin ETNs debut in London, paving way for UK to become Europe’s crypto hub, says 21Shares | Focus on the future
According to an executive at 21Shares, Bitcoin and ETNs (Exchange Traded Notes) have started trading on the London Stock Exchange (LSE), opening the door to potentially making the UK the crypto hub of Europe.
To know more: Real-time prices of cryptocurrencies
ETNs trade and settle like regular stocks and track the performance of underlying assets such as bitcoin or ether, similar to bitcoin spot exchange traded funds (ETFs), which were approved by the U.S. Securities and Exchange Commission (SEC) in January.
Yahoo Finance Future Focus spoke to Alex Pollak, head of UK for 21Shares, about the launch of bitcoin and ether ETN trading on the LSE and what this could mean for the UK’s development as a global crypto hub.
To know more: Bitcoin price is rising amid US inflation data and ETF inflows
Pollak said that by approving the listing of bitcoin and ether ETNs on the LSE, the UK’s Financial Conduct Authority (FCA) is attempting to gradually open up the cryptocurrency market in the UK.
“I think the fact that these products will now be available on the London Stock Exchange shows progress and I think within three years the UK will be home to the largest cryptocurrency exchange-traded fund market in Europe,” Pollak added.
He said that in terms of significance, the listing of the bitcoin and ether ETNs on the LSE represents a milestone in how UK investors can access cryptocurrencies.
“From a 21Shares perspective, I would like to add that as the world’s largest issuer of cryptocurrency-backed ETPs with more than 40 products listed on 11 exchanges, we are proud to be part of this historic moment by making our Bitcoin and Ether products available to UK investors in both GBP and USD,” Pollak added.
However, the 21Shares executive stressed that Tuesday’s listing of Bitcoin and ETN ETN on the LSE will be reserved for professional investors only. “But the turning point in the UK will come when the retail ban is lifted, there is currently a retail ban on trading bitcoin and ether ETNs,” he added.
The story continues
The FCA approval is a step in the right direction for the UK
Last week, a CryptoUK spokesperson said they were pleased to see that the FCA had approved applications from some providers to list physically backed bitcoin and ether (ETH-USD) products traded on the LSE.
To know more: Bitcoin’s Success with SEC Fuels Anticipation for Ether Spot ETF
“The move is a step in the right direction for the UK, its stock markets and the government’s aspiration to secure Britain as a global crypto-asset hub. We would, however, reiterate that we would like to see more crypto-related instruments available to both institutional and retail investors in the UK is at risk of falling behind US stock markets, which have seen a surge in interest in bitcoin ETFs,” CryptoUK added.
The UK as a global crypto hub
In April 2022, then-Chancellor and current British Prime Minister Rishi Sunak announced a plan to make the country a “global crypto hub.” However, since then, the UK has lagged other jurisdictions, becoming one of the last major markets to resist trading in cryptocurrency-related securities, despite government efforts to position the country as a potential center for digital asset markets .
To know more: Bitcoin ETFs are primed for inflows into US pension plans, Standard Chartered analyst says
The SEC approved the first US-listed ETFs to track bitcoin (BTC-USD) in January. A bitcoin spot ETF is similar to London’s ETN products, and investors predict that both types of financial products could open the door for traditional capital to flood the cryptocurrency market.
Currently, indications of traditional finance interest in digital assets in the US appear favorable, with fund managers such as BlackRock (BLK) and Franklin Templeton (WELL) by increasing their bitcoin allocations via ETFs.
Watch: What is a bitcoin spot ETF and why has it triggered a cryptocurrency rally? | Focus on the future
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