Behind London Stock Exchange’s move to list crypto ETNs
The London Stock Exchange’s (LSE) recent decision to list crypto exchange-traded notes (ETNs) has generated significant crypto news within the crypto sector. This action establishes the United Kingdom as a possible center for cryptocurrency trading in Europe and marks a major advancement in the widespread use of cryptocurrencies. In this article, MPost wants to dive deep into this topic and analyze it.
What is ETN crypto?
Exchange-traded notes, often known as crypto ETNs, are a kind of unsecured debt securities that are exchanged on stock exchanges. The purpose of these products is to provide investors access to the performance of underlying cryptocurrencies, including Ethereum and Bitcoin. Exchange-traded notes (ETNs) do not own the underlying assets directly, in contrast to typical ETFs. Rather, they are secured by the creditworthiness of the company producing the cryptocurrency, which guarantees that payments will be made in accordance with how well the asset performs.
Where to buy ETN crypto?
The LSE’s ETN crypto exchange products will initially only be available to experienced investors. The action has, nonetheless, raised hopes that regular investors would someday be able to acquire these products, thus democratizing the cryptocurrency market.
The first cryptocurrency ETNs to list on the LSE are offered by companies like WisdomTree, Invesco, and 21Shares, and they track the performance of Ethereum and Bitcoin, which are the two biggest cryptocurrencies in terms of market capitalization. Investors will have a regulated and comfortable option to have exposure to the cryptocurrency market with these ETNs, which will be traded and settled like ordinary shares.
London Stock Exchange’s AIM Market
The listing of cryptocurrency ETNs by the LSE is in line with the UK government’s goal of making the nation a “global crypto hub.” Rishi Sunak made intentions to embrace digital assets and establish the UK as a hub for cryptocurrency innovation public in April 2022.
The FCA’s approval of crypto ETNs was welcomed by the British trade association CryptoUK, which saw it as a positive development for the UK’s equities markets and the government’s goal of securing Britain as a worldwide center for crypto assets. However, the group stressed how important it is to increase the number of cryptocurrency-related products that institutional and individual investors may access.
ETNs crypto price prediction
It is anticipated that the LSE’s listing of cryptocurrency ETNs would benefit the larger cryptocurrency industry. The increasing accessibility of these securities to institutional investors has the potential to stimulate demand and elevate the price of cryptocurrencies.
Experts think that one of the main forces for growth and optimistic investor attitude is the regular financial markets’ acceptance of cryptocurrencies. The asset class gains credibility when cryptocurrency ETNs are listed on well-known exchanges like the LSE. Additionally, it may open the door for more widespread acceptance.
Within a couple of years, the UK may have the largest cryptocurrency exchange-traded fund market in Europe, according to Alex Pollak, head of UK for 21Shares, a prominent issuer of crypto-backed exchange-traded products (ETPs). Declaring, “21Shares is pleased to be a participant in this landmark event as it puts Bitcoin and Ethereum assets accessible to UK investors in both GBP and USD,” Pollak underlined the significance of the LSE listing.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.
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He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.
