Anyway, in terms of safety, it's safe in a way because you're doing it on a highly regulated and compliant platform, but unsafe in a way because you don't actually own any real Bitcoin, only a kind of ETP. So, you aren't actually in control of your Bitcoin.
Do you think the stock broker owns any bit coin though? meaning they own the bitcoin and you dont they just owe it to you like banks and fiat currency. Or is it just a futures market thing where there is no actual Bit Coin in there?
We're talking here specifically of ETN because that's the kind of ETP that's being offered on LSE. I guess the general description of an ETN is that it is unsecured. Meaning to say, it doesn't own the asset it is tracking.
However, there are actually Bitcoin ETNs offered in the market that are fully collateralized. I've read, for example, that VanEck's Bitcoin ETN is 100% fully-backed by actual coins kept in cold storage.
Furthermore, I'm referring you to the
Crypto ETN Admission Factsheet, a document which specifically outlines the admission process of crypto ETNs on LSE. It says there that crypto ETNs, to be admitted, should be "physically backed" or that it "has Bitcoin or Ethereum underlying cryptoassets", 90% at least.
Finally, of course, you will have to do some due diligence as to the issuer of the specific ETN you have your eyes on, its fees and whatnot.