Ethereum and Bitcoin exchange traded notes (ETNs) are officially live on the London Stock Exchange (LSE). This news could catalyse the UK’s push to become a global crypto hub.
Alex Pollak of 21Shares (one of the UK issuers for BTC and ETH ETNs) recently spoke with Yahoo Finance. Commenting on the development, Pollak said, “I think the fact that these products will now be available on the London Stock Exchange does show progress and I think within three years from now the UK will be home to the largest crypto exchange-traded fund market in Europe.”
We are pleased to announce the launch of Crypto ETNs on the London Stock Exchange, effective 28 May 2024, welcoming products from @WisdomTreeEU and @21Shares.
Get in touch to learn more: https://t.co/zmHOsb7Keg pic.twitter.com/tMDTFtNNIa
— London Stock Exchange (@LSEplc) May 28, 2024
ETNs To Act As Catalyst For UKs Global Crypto Hub Plan?
At a financial summit in April 2022, UK Prime Minister Rishi Sunak stated it was his “ambition to make the UK a global hub for crypto asset technology.”
Since that summit in 2022, the UK has not made much headway with its plans. It was one of the last major markets to allow the trading of crypto-related securities.
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According to Pollak these listings prove that the Financial Conduct Authority (FCA) are attempting to gradually open up the crypto market within the UK before adding. “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’re proud to be part of this historic moment as we make our bitcoin and ether products available to UK investors in both GBP and USD,” he said.
Retail Ban On ETNs The Final Obstacle
Currently, the ETNs are only available to professional investors. Alex believes that the true breakthrough moment for the UK will come once ETNs are opened up to retail. “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,” Pollak said.
Stuart Kirk, columnist at The Financial Times, is not happy that the British BItcoin ETN is not available to retail. pic.twitter.com/uMn708rOi5
— Bitcoin Perception 🗞️ 📊 (@BTCPerception) March 15, 2024
Mainstream Capital To Flow Into Crypto With UK & US On-Board
ETNs are traded and settled similar to regular shares and track the performance of underlying digital assets such as Bitcoin or Ethereum. The process works similar to spot Bitcoin exchange-traded funds (ETFs).
ETFs were approved by the US Securities and Exchange Commission (SEC) in January 2024. With two huge markets in the UK and US now offering investors regulated investment opportunities for digital assets, there is a strong possibility to onboard a never-seen before level of mainstream capital into the crypto market.
Rishi Sunak may adopt a similar approach in his general election campaign to that of Donald Trump in the US. Trump is positioning himself as the ‘crypto-friendly’ presidential candidate. Over 11 million Brits reportedly own digital assets as of 2024. This could see Sunak targeting the UK’s pro-crypto contingent in a bid for votes.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
