It has been revealed that the London Stock Exchange (LSE) intends to launch exchange-traded notes (ETNs) for Bitcoin (BTC) and Ethereum (ETH) on May 28. These ETNs will provide investors with investment products that monitor the performance of these cryptocurrencies.
It is possible to submit applications for cryptocurrency exchange-traded notes (ETNs) beginning on April 8. Successful funds are anticipated to be listed the following month, provided that they receive permission from the Financial Conduct Authority (FCA) of the Philippines.
To be eligible for consideration, issuers must submit a draft prospectus and a letter by the 15th of April, explaining how they satisfy the requirements for exchange-traded notes (ETNs).
The cryptocurrency exchange-traded notes (ETNs) must be physically backed, non-leveraged, have a dependable value based on the underlying market price, and be denominated entirely in Bitcoin or Ethereum in order to satisfy the requirements for approval.
In addition, the underlying assets must be kept in cold storage by a custodian that is appropriately licensed to comply with anti-money laundering requirements in either the United States of America, the European Union, or the United Kingdom.
Therefore, it is essential to keep in mind that these exchange-traded notes (ETNs) will only be accessible to professional investors. This is because the United Kingdom Financial Conduct Authority (FCA) has outlawed the selling of crypto derivatives and ETNs to public investors since January 2021.
The Financial Conduct Authority (FCA) has stated in its roadmap for the next two years that it intends to tighten safeguards against market misuse in the cryptocurrency area. During the month of October in the previous year,
the Financial Conduct Authority (FCA) introduced new laws on marketing related to cryptocurrencies, highlighting its dedication to take stringent measures against any potential breaches.
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