Bitcoin
Bitcoin ETNs Debut on the London Stock Exchange
Watch: Bitcoin ETNs debut in London, paving the way for the UK to become Europe’s crypto hub, says 21Shares | Future Focus
Bitcoin and Ether exchange-traded notes (ETNs) have started trading on the London Stock Exchange (LSE), opening the door to potentially making the UK Europe’s crypto hub, according to a 21Shares executive.
See more information: Live Crypto Prices
ETNs trade and settle like regular stocks and track the performance of underlying assets such as bitcoin or ether, similar to spot bitcoin 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 at 21Shares, about the launch of Bitcoin and ETN ETN trading on the LSE and what this could mean for the UK’s development as a global crypto hub.
See more information: Bitcoin Price Rises Amid US Inflation Numbers, ETF Inflows
Pollak stated that by approving the listing of bitcoin and ether ETNs on the LSE, the UK Financial Conduct Authority (FCA) is trying to gradually open up the crypto market in the UK.
“I think the fact that these products are now available on the London Stock Exchange shows progress and I think that within three years the UK will be home to the largest cryptocurrency exchange-traded funds market in Europe,” Pollak added.
He said that in terms of importance, the listing of bitcoin and ether ETNs on the LSE represents a milestone in the way UK investors can access crypto.
“From a 21Shares perspective, I would add that as the world’s largest issuer of crypto-backed ETPs, with more than 40 products listed on 11 exchanges, we are proud to be part of this historic moment as we make our Bitcoin and Ether products available to everyone. UK investors in GBP and USD,” Pollak added.
However, the 21Shares executive emphasized that Tuesday’s Bitcoin and ETN ETN listing on the LSE will be for professional investors only. “But the game changer in the UK will be when the retail ban is lifted, there is a retail ban on trading Bitcoin and ether ETNs at the moment,” he added.
The story continues
FCA approval ‘step in the right direction for the UK’
Last week, a CryptoUK spokesperson said it was pleased to see that the FCA had approved applications from some providers to list physically backed Bitcoin and Ether (ETH-USD) exchange-traded products on the LSE.
See more information: Bitcoin Success with SEC Fuels Expectations 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 hub for crypto assets. We would, however, like to reiterate that we would like to see more instruments related cryptocurrencies available to institutional and retail investors in the UK, the country risks falling behind US equity 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 Prime Minister of the United Kingdom, Rishi Sunak, announced a plan to make the country a “global crypto hub.” However, the UK has since fallen behind 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 hub for asset markets. digital.
See more information: Bitcoin ETFs Poised for US Pension Plan Inflows, Says Standard Chartered Analyst
The second approved the first US-listed ETFs to track bitcoin (BTC-USD) in January. A spot bitcoin ETF is similar to London ETN products, and investors anticipate that both types of financial products could open the door for conventional capital to flood the crypto market.
Indications of traditional financial interest in digital assets in the US currently appear favorable, with fund managers such as BlackRock (BLACK) and Franklin Templeton (BEN) increasing their bitcoin allocations through ETFs.
Watch: What is a spot bitcoin ETF and why has it triggered a crypto rally? | Future Focus
Download the Yahoo Finance app, available for Litter It is Android.