In a follow-up to the Stock Exchange Notice issued on March 11, 2024, the London Stock Exchange (LSE) has disclosed its intention to commence accepting applications for the admission to trading Bitcoin and Ethereum Crypto Exchange-Traded Notes (ETNs) from April 8, 2024.

Regulatory Hurdles: FCA Approval Crucial for LSE's Crypto ETN Launch

The Exchange's decision is contingent upon the approval of the base prospectuses by the Financial Conduct Authority (FCA), which is necessary for listing Crypto ETNs on the Main Market and the Official List of the FCA. Pending regulatory approval, the proposed date for the commencement of trading for these Crypto ETN securities is slated for May 28, 2024.

The LSE has strategically opted to launch the market for Crypto ETNs on May 28 to facilitate the maximum participation of issuers on the inaugural trading day. This choice of date factors in the necessity for issuers to meet the eligibility criteria outlined in the Crypto ETN factsheet. Additionally, it allows ample time for issuers planning to list securities on the launch date to compile the requisite documentation to establish a Crypto ETN program, including obtaining the FCA's approval for the base prospectus.

Compliance Crucial: Standards for Participation in LSE's Crypto ETN Debut

Issuers intending to establish a Crypto ETN program for listing securities on the Main Market on May 28, 2024, are required to furnish the Exchange with necessary information no later than April 15, 2024. This includes a detailed letter outlining how the issuer and/or the Crypto ETN meet the stipulated requirements as per the Crypto ETN factsheet, along with a draft of the base prospectus indicating the inclusion of disclosures about these requirements.

However, issuers must adhere to Admission and Disclosure Standards to partake in the first day of trading of Crypto ETNs on May 28, 2024. Failure to satisfy these standards will result in exclusion from participation. Specifically, issuers will be ineligible if they fail to demonstrate compliance with the requirements outlined in the Crypto ETN factsheet, submit their application for admission post the April 15, 2024 deadline, or if their base prospectus fails to secure the FCA's approval by midday on May 22, 2024.