The London Stock Exchange will soon launch financial products allowing you to invest in cryptocurrencies.

The rebound of bitcoin, above $70,000 this Tuesday, March 26, should be compared with these products soon to be available on the London Stock Exchange, called ETNs. If in the United States, spot bitcoin ETFs have been favored since mid-January, in the United Kingdom, place has been given to ETNs. An ETN is an Exchanged Traded Note, not a share of an asset. These are products somewhat similar to ETFs, except that the investor does not hold an asset but a form of bond.

These products will be launched in May and issuers have until April 15 to offer their products and submit them to the financial authorities. We already have a few crypto companies in the niche including Vaneck, 21Shares, Coinshares and Wisdomtree. But the first important restriction is that these products will not concern individual investors. They will only be traded and exchanged by professional investors.

Financial center in decline

Then, apart from a few technical specificities, these products resemble some already exchangeable on Euronext or Deutsche Börse. For example, Vaneck was one of the first funds to release and trade bitcoin-indexed products in Europe.

We realize that London wants to increase the investment space of its big banks and its big funds in these new supports. This is part of its pro-crypto government initiative, which wants to make the London market a strategic point for the industry while business is bad on the stock market. Now, we will have to deploy marketing treasures to dislodge the players already present on other European platforms and discourage the public from looking at American ETFs.

Antoine Larigaudrie with Pauline Armandet


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