Bitcoin Hits $71,600 as LSE Opens Crypto ETFs Application
The market price of the largest cryptocurrency by valuation surged to nearly $72,000 on Monday following notice that the London Stock Exchange (LSE) will start to accept crypto exchange-traded notes.
This, according to analysts, would pave the way for broader investment into cryptocurrencies. Investors have piled into U.S.-listed bitcoin exchange-traded funds since these funds launched in January, following approval from the Securities and Exchange Commission.
That has helped boost prices for Bitcoin and other digital tokens. On Monday, the U.K.’s Financial Conduct Authority said it would allow exchanges to offer similar products exchange-traded notes backed by cryptocurrencies to institutional investors.
Bitcoin recently traded above $71,800, CoinDesk data showed. The London Stock Exchange (LSE) announced that it will start accepting applications for Bitcoin and Ether crypto exchange-traded notes (ETNs) in the second quarter of 2024.
On March 11, the exchange confirmed that it would accept applications following the guidelines specified in its crypto ETF fact sheet. However, the exchange did not provide the exact date that it will start accepting applications.
Within the sheet, the exchange said that crypto ETNs should be physically backed and are non-leveraged. It should have a market price or value measure of the underlying asset that’s publicly available and must have BTC or ETH as underlying crypto assets.
The exchange also highlighted that the underlying crypto assets should be “wholly or principally” held in a cold wallet or something similar. In addition, it should be held by a custodian subject to AML laws in the United Kingdom, European Union, Switzerland or the United States.
The exchange defines ETNs as “debt securities which provide exposure to an underlying asset.” Crypto ETNs allow investors to trade securities that track the performance of crypto assets during the exchange’s trading hours.
An ETN is widely considered a soft alternative to exchange-traded funds (ETFs). Unlike the ETFs, an ETN is a debt instrument backed by its issuers rather than a pool of assets. ETFs often focus on esoteric debt strategies that do not easily fit into funds. #Bitcoin Hits $71,600 as LSE Opens Crypto ETFs Application
