Breaking Ground: Bitcoin ETNs Set to Premiere on LSE - First Mover Americas

The London Stock Exchange (LSE) has announced plans to introduce a market for bitcoin (BTC) and ether (ETH) exchange-traded notes (ETNs) commencing on May 28th, as revealed on Monday. Interested parties can begin submitting applications for trading crypto ETNs starting April 8th. 

However, it's worth noting that the establishment of this market is contingent upon approval from the U.K.'s financial regulator, the Financial Conduct Authority (FCA), as outlined in the notice.

ETNs, akin to exchange-traded funds (ETFs), are structured to replicate investments tracked by an index or benchmark. However, they diverge in that ETNs function more akin to bonds, representing unsecured debt notes. 

In line with this development, the FCA had previously indicated in March that it would entertain requests from recognized investment exchanges seeking to establish a listed market segment for ETNs. Notably, these products will be accessible exclusively to professional investors.

Meanwhile, in the United States, spot bitcoin (BTC) exchange-traded funds (ETFs) listed on Nasdaq saw notable inflows totaling $15.4 million on Monday, halting a five-day streak of outflows. 

According to preliminary data released by investment firm Farside, Fidelity's FBTC spearheaded the inflows, amassing $261.8 million, followed closely by BlackRock's IBIT, which garnered $35.5 million. Other funds such as BITB, BTCO, EZBC, and BRRR also saw inflows ranging between $11 million and $20 million each. 

Conversely, Grayscale's ETF (GBTC) continued to experience outflows, shedding slightly over $350 million. Last week, these ETFs collectively witnessed a cumulative outflow of $887.6 million, primarily driven by withdrawals from GBTC.

Shifting focus to legal matters, the U.S. Securities and Exchange Commission (SEC) has petitioned a New York judge to levy an approximate $2 billion fine on Ripple Labs, according to court filings. Stuart Alderoty, Ripple Labs' chief legal officer, confirmed the SEC's request for such a penalty via social media on Monday.

 The proposed fine encompasses $876 million in disgorgement, $198 million in prejudgment interest, and a $876 million civil penalty, totaling $1.95 billion. Redacted versions of the court documents detailing these developments are anticipated to be made public by March 26th.