The London Stock Exchange has detailed the process for admitting Crypto Exchange Traded Notes (ETNs) to its trading platform. ETNs are debt securities that provide exposure to an underlying asset, and in this case, Crypto ETNs track the performance of cryptoassets like Bitcoin or Ethereum.

For the admission of Crypto ETNs, the London stock exchange has established specific criteria to protect the reputation and integrity of its markets. Firstly, the proposed Crypto ETN must be physically backed and not leveraged. Secondly, it must have a reliable and publicly available market price or value measure for the underlying asset. Lastly, the underlying cryptoassets must be Bitcoin or Ethereum.

Regarding the custody of the cryptoassets, they must be held in "cold storage," meaning offline depositary wallets. If alternative arrangements are used instead of cold storage, the issuer must obtain an audit report from a qualified third party. The custodians holding the cryptoassets must also comply with Anti-Money Laundering (AML) regulations in the United Kingdom, European Union, Jersey, Switzerland, or the United States.

To facilitate a smooth admission process for Crypto ETNs, the London stock exchange encourages early engagement from prospective issuers. Issuers can admit up to three different currency lines for each Crypto ETN. These lines can be applied for simultaneously with the main currency line or at a later stage. The required documentation for multi-currency lines is similar to that of the standard line, except for the prospectus/pricing supplements.