The main stock exchange in the United Kingdom is set to start accepting applications for crypto-tied exchange-traded notes.

The London Stock Exchange (LSE) revealed in a press release on on Mar. 11 that it will start accepting applications for the admission of Bitcoin (BTC) and Ethereum (ETH) crypto exchange-traded notes (ETNs) in Q2, 2024. Although the exact launch date remains unclear as the LSE plans to disclose it “in due course,” the exchange noted that it plans to accept applications in accordance with the details contained in the crypto ETN factsheet.

According to the factsheet, crypto ETNs will be allowed for trading on the LSE only for professional investors and are under designated trading segments. Issuers could offer up to three different currency lines for each crypto ETN, the factsheet reads.

The document also states that the custody of underlying crypto for ETNs must primarily be in cold storage. While the LSE does not elaborate on this matter further, it added that custodians must adhere to anti-money laundering regulations in jurisdictions such as the U.K., E.U., Jersey, Switzerland, or the U.S. After the news broke, Bitcoin’s price quickly jumped above $71,000, while ETH soared above $4,000. However, it’s not clear whether LSE’s move had an effect on price appreciation.

For the London Stock Exchange, the latest move toward embracing web3 is not entirely novel, as the stock exchange has been exploring blockchain technology’s potential applications, including the possibility of facilitating blockchain-based trading for traditional financial assets for some time now. For instance, in September 2023, the London Stock Exchange Group unveiled plans to introduce blockchain-based trading for traditional financial assets, citing a strategic pivot driven by the potential benefits of integrating blockchain within traditional markets.