|Aug 16, 2018 03:30 PM||By: Ben Noble | 3204 Views|
ETN (Bitcoin Exchange Traded Notes) are here as Swedish company CoinShares begins this product offering millions of investors an opportunity to invest in the dollar to buy bitcoin without really buying it.
Bitcoin ETFs might not have received the green light yet, but another option has entered the market that allows one to buy Bitcoin without having actually to buy it. This product is called Bitcoin Tracker One, which is published by the Swedish company XBP provider, a subsidiary of UK-based Global Advisors Ltd.
Bitcoin Tracker One has started an ETN (exchange-traded note) that tracks Bitcoin (BTC/USD). Non-Us security, this Bitcoin ETN is available as an F share valued in USD and trading on Nasdaq Stockholm exchange, which presents it more friendly to US retirement and brokerage accounts.
Under the ticker CXBTF, despite continuing listed and regulated in Sweden, now US investors can efficiently spend indirectly in Bitcoin.
The CEO of CoinShares Holdings Limited Ryan Radloff, the company that is publishing these ETN, explained to Bloomberg the importance of this product,
“Everyone that’s investing in dollars can now get publicity to these products, whereas before, they were only possible in euros or Swedish krona.”
He further continued,
“Given the modern climate on the regulatory front in the U.S., this is a big win for Bitcoin.”
Related to buying an American depositary receipt, Bitcoin-Tracking One is a foreign-listed asset in US dollars. Investors can now buy the F shares, that means though trades are performed in US dollar, they will be kept in custody, cleared, and lived in the home market only.
The market has been extremely concerned about ETFs that has been frequently rejected by the SEC. Now, these ETN’s are an opening for investors that unlike ETFs are debt instruments supported by their issuers, which is usually a bank.
This can be an alternative to the bitcoin investment trust possible in the market such as that of Grayscale’s that is valuable and has lower liquidity. But, Radloff doesn’t understand so as the comments,
“I do see this as a competitive product. Our results historically have not traded at a premium and are liquid.”
Not everyone is worried of this prospect as some believe it to be far riskier than the ETFs and working to get a grasp on things as one Redditor yielded,
“Is this the one that has been working for two years already?”
To which someone replied with,
“Right but now it’s filed on OTC Markets additionally.”
As for the relationship of fidelity, one shared in part, “Fidelity is just working as a broker, as you stated, the product is offered by Coin shares. It has been offered since 2015. Fidelity has just begun offering it to their clients though.”
It is yet to be seen how these ETNs will hit Bitcoin and the market!