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The LSE will begin accepting applications for cryptocurrency ETNs

The LSE will begin accepting applications for cryptocurrency ETNs

created Simon petersApril 2 2024

We've entered April, which means all attention will be focused on halving the block reward bitcoin, which (as far as we know at the time of writing this text) is scheduled to take place on April 20. This raises curiosity as to whether we will see new all-time highs in the price of Bitcoin.

However, the month did not start well, as the price dropped by 7%, now reaching $66. Before a halving, there is usually a sell-off as miners, investors and traders prepare for the change. The question is whether the price can continue to fall from current levels or if there will be some support for the price to remain high.

Dogecoin gained 25%. last week thanks to "rumors" about payment X

DOGE (Dogecoin) was one of the best performing cryptos last week, gaining 25%. As reported decrypt, DOGE's move last week came after the artificial intelligence chatbot X Grok told some users that dogecoin payments were possible on the platform. This is likely the result of “hallucinations” on the part of the AI, as no payment feature for dogecoin has been officially enabled. Nevertheless, this did not stop the price from rising.

Memecoins remain one of the best-performing cryptocurrencies this year, but their values ​​are highly speculative. Dogecoin is up 150% this year, while more established cryptocurrencies like bitcoin and ethereum are only up 70%.

Bitcoin Cash grows ahead of block reward halving

Bitcoin Cash (BCH) was the next best-performing cryptocurrency last week, gaining 40%. This was likely done in anticipation of its own block reward halving event, which is scheduled to take place on April 2. Similar to Bitcoin, the block reward on the Bitcoin Cash blockchain will drop from 6,25 BCH to 3,125 BCH.

Bitcoin Cash was created in 2017 as a result of the so-called hardfork (meaning a permanent divergence from a previous version of the blockchain) from the original Bitcoin blockchain.

The LSE will begin accepting applications for cryptocurrency ETNs

London Stock Exchange (LSE) announced last weekthat soon, on April 8, it will start accepting applications for admission to cryptocurrency trading Bitcoin and Ethereum Exchange Traded Notes (ETN), with a view to starting trading on May 28.

ETNs are debt securities that provide exposure to an underlying asset. Typically, ETNs are unsecured, and investors must trust that the issuer will deliver on returns. However, as pointed out in information sheet regarding the admission of ETNs, the exchange will only consider applications for admission that are physically secured and the underlying assets (cryptocurrencies) are stored in the so-called cold storage (a less convenient but safer way of storing cryptocurrency keys).

Availability will be limited to professional investors only. At this time, retail investors will not be able to purchase these ETNs if they are listed. However, the potential listing of cryptocurrency ETNs on the London Stock Exchange brings the UK closer to other developed countries that already offer a variety of exchange-traded cryptocurrency products.

Tidal and Hashdex Announce Bitcoin Spot ETF Trading in the US

Tidal Investments and Hashdex announced last week trading its Bitcoin ETF called Hashdex Bitcoin ETF. Initially, the ETF was scheduled to launch on January 11, along with other applications.

Originally it was ETF for bitcoin futures (Hashdex Bitcoin Futures ETF), but last week, the fund completed the conversion to now allow ownership of actual bitcoins. At least 95 percent the fund's assets will now be in real bitcoins, and up to 5%. invested in CME bitcoin futures, cash or cash equivalents.

Since their launch on January 11, spot bitcoin ETFs have seen significant inflows and trading volumes. While the Hashdex Bitcoin ETF is a bit "late to the party," it could take some market share away from others if the fee structure proves competitive.

Tether (USDT) is now available on Celo

USDT is now available on Celo, after previously being announced in March.

“This expansion underscores the shared mission of both companies to extend the benefits of blockchain-based technologies to mainstream consumers around the world.” – we read further in the announcement.

USDT is considered the largest by market capitalization and most liquid stablecoin in the cryptocurrency industry.

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About the Author
Simon peters
eToro analyst. A graduate of the Faculty of Mechanical Engineering at Brunel University in London. He is CFA UK Level 4 certified in Investment Management.