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While the entire cryptographic space deliberates on the need for a Bitcoin ETF, Sweden has already introduced an ETN (Bitcoin Exchange Funded Note).
Issued by a Swedish company known as the XBT provider, the Exchange-Traded-Note (ETN) dubbed "Bitcoin tracker one" allows investors to exchange Bitcoin and track its performance.
Yesterday, an F quota (essentially a ticker signature for foreign securities) with the CXBTF ticker, became available for "Bitcoin tracker one" which allows US investors to trade and monitor Bitcoin between USD / BTC pairs. The Bitcoin ETN is quoted on the Stockholm stock exchange (aka Nasdaq Stockholm).
CRYPTO:@CoinSharesCojust announced a #BItcoin ETN quoted in USD (ticker: CXBTF). Similar to the GBTC, so you can buy a traditional brokerage account. @coinshares commercial products at the NAV (which we talked about before) then return practically identical to #Bitcoin https://t.co/j7NNSuoDgn
– Thomas Lee (@fundstrat) August 15, 2018
Speaking with Bloomberg, the issuer of Bitcoin ETN, CEO of CoinShares, Ryan Radloff, explained why this new exposure is important:
"Anyone investing in dollars can now get exposure to these products, whereas previously they were only available in euros or in Swedish krona.To view the current regulatory climate in the United States, this is a big win for Bitcoin."
Radloff talked about a similar product already on US stock exchanges, known as the Grayscale Bitcoin Investment Fund (GBTC), but sees its ETN as an all-round investment:
"I see it as a competitive product, our products have historically not been traded at a high price and are liquid".
Unlike exchange-traded funds (ETFs) that represent a holding in an underlying asset, an ETN is a "debt security" that acts more like bonds because they are not guaranteed (ie not supported by an underlying, but by the "full trust and the issuer") function effectively as derivatives issued by banks to monitor the performance of an asset.
Although this ETN is not something particularly new (it started to counterattack in 2015), the fact that it has become a stock F and therefore quoted in USD makes the difference, opening the market interest.
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