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While the entire community of cryptocurrencies is awaiting the approval of a potential bitcoin ETF from the US Securities Exchange and Securities Commission (SEC), investors can now buy banknotes traded with Bitcoin, fully regulated in Sweden.
"Big Win for Bitcoin"
As of yesterday, investors can trade using the so-called Bitcoin Tracker One offered by a parent company of CoinShares Holdings, LTD, according to Bloomberg.
The product is listed and regulated in Sweden, but is already quoted in US dollars, allowing the purchase of traditional US accounts. With the CXBTF ticker, it is traded on the Stockholm Nasdaq stock exchange since 2015. However, until now, it was only available in euros and in the Swedish krona.
Speaking of the matter, CoinShares CEO Ryan Radloff said:
Anyone investing in dollars can now get exposure to these products, whereas previously they were only available in euros or Swedish kroner. […] Given the current regulatory climate in the United States, this is a big win for Bitcoin.
Banknote negotiation is similar to the purchase of an American deposit slip: the trader will see a foreign currency in US dollars. By acquiring the so-called F shares, the transactions will be executed in US dollars, but will be liquidated, liquidated and also held in custody in the domestic market, which, in this case, is in Sweden.
Similar to an ETF
The news quickly captured the community's attention. Fundstrat's co-founder and chief analyst, Tom Lee, reiterated that it is possible to find similarities between the ETN and the highly anticipated Bitcoin ETF.
@CoinSharesCo buy #BTC with each issue of shares, which means that this ETN works similarly to an ETF despite the structural differences. See excerpt from their Factsheet … So, when actions increase / AUM grows, $ CXBTF he is buying Bitcoin. pic.twitter.com/pjv7COUDoh
– Thomas Lee (@fundstrat) August 15, 2018
Interestingly, unlike ETFs, ETNs are debt instruments. They are also supported by the entity that issues them and not on a pool of resources.
Bitcoin Tracker One also offers an alternative to another similar product offered by Grayscale: the Bitcoin Investment Trust (GBTC). The latter is traded at a significant premium, which, according to Radloff, gives CXBTF a competitive advantage.
"I see this as a competitive product," said Radloff. "Our products are not historically traded at a high price and are liquid."
Do you think the Bitcoin ETN will trigger a wave of institutional investments? Do not hesitate to let us know in the comments below!
Images courtesy of Shutterstock
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