A variant of a fund traded on a bitcoin exchange (ETF) has been released for US investors with the CXBTF ticker. Nicknamed Bitcoin Tracker One, it is a note traded on the stock exchange (ETN) that has been listed in Sweden in recent years and recently made the leap to allow US dollar investors. The note was created to track the bitcoin movement and allow investors to invest in cryptocurrency without actually getting a wallet and buying the currency.
The ETN is a different method for tracing bitcoins than previous attempts that have been focused on ETFs. The ETF usually tracks an underlying commodity while an ETF instead follows a debt obligation, often with an embedded derivative. The Swedish creators were able to manipulate the debt they track to compete with the price of bitcoin over the course of their lives. This was done by the issuer of banknotes that bought the necessary amount of bitcoins for the debt on which to base themselves.
This is an important step for US investors who have been pushing for a bit of time for an ETF to follow the bitcoin. There have been several attempts to introduce this, but US regulators have knocked down all attempts. The most notable was the failed attempt last month by two influential bitcoins, the Winklevoss brothers. The main reason for these failures is concern for the manipulation of liquidity and currency.
ETN's creator's CEO, Ryan Radloff, sees a lot of potential in the product while others have struggled to navigate the space. He commented
Anyone investing in dollars can now get exposure to these products, whereas before they were only available in euros or in Swedish krona, given the current regulatory climate in the United States, this is a big win for Bitcoin .
Currently Bitcoin Tracker One has experienced a 51% fall in the year, which is close to the fall of 54% bitcoin.