On May 28, the London Stock Exchange (LSE) plans to launch cryptocurrency ETNs that will track the evolution of Bitcoin and Ether.
These ETNs are only available to professional investors due to the UK's Financial Conduct Authority (FCA) ban on the sale of cryptocurrency derivatives and ETNs.
To be approved, ETNs must meet certain criteria, such as being physically backed, not leveraged and denominated in Bitcoin or Ether.
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The assets must also be cold-stored by an authorized depositary in the United Kingdom, the European Union or the United States. Applications can be submitted from April 8 and selected funds will be included in May, pending FCA approval.
The move comes after the SEC approved spot Bitcoin exchange-traded funds in January. The FCA has also listed the tightening of measures against crypto market abuse as one of its objectives in its biennial plan.