London Stock Exchange's Crypto ETN Launch Falls Flat with Low Trading Volumes

London Stock Exchange's Crypto ETN Launch Falls Flat with Low Trading Volumes

The London Stock Exchange's (LSE) much-anticipated launch of cryptocurrency exchange-traded notes (ETNs) has failed to generate significant trading volumes, raising questions about the relevance of these products in the European market. According to CryptoSlate, only 200 shares of the 21Shares Bitcoin ETN were traded on the first day of its listing. This lackluster performance suggests that investors may not be eager to embrace crypto ETNs, especially given the existing availability of digital asset exchange-traded funds (ETFs) in Europe. Unlike ETFs, which are open to all investors, many ETNs listed on the LSE are restricted to qualified institutional investors. This limited accessibility has further reduced the appeal of these products among retail investors. Industry experts have expressed mixed opinions on the LSE's crypto ETN launch. ByteTree founder Charlie Morris criticized the lack of promotion and fanfare surrounding the event, suggesting it contributed to the low trading volumes. Morris also highlighted the fact that these ETNs are not new products but merely new share classes for Bitcoin ETPs that have been trading in Germany and Switzerland for some time. This lack of novelty may have further dampened investor enthusiasm. The poor trading volumes cast doubt on the significance of crypto ETNs in the European market. With a wide range of digital asset ETFs already available, it remains to be seen whether investors will embrace these alternative products.