On the American market, a publicly traded bitcoin exchange-traded note (ETN)
On the American market, a publicly traded bitcoin exchange-traded note (ETN), which you can join the market of digital currencies, not buying themselves cryptocurrencies.
Starting from 15 August, American investors can buy bitcoin ETN, although technically the listing of the tool and control are carried out in Sweden. The product, called Bitcoin Tracker One, with the Ticker CXBTF now is priced in dollars, which will allow brokers to offer American investors. For the first time CXBTF began trading on NASDAQ Stockholm in 2015.
Bitcoin ETN is a preamble to the start of trading of the bitcoin ETF on the U.S. market, the adoption of which persistently tightens the SEC, citing concerns over manipulation and poor market liquidity.
“America became available trading bitcoin notes paired with the US dollar. Previously this tool was only traded in pairs with the Euro or the Swedish Krona,” said Ryan Radloff, chief Executive officer CoinShares Holdings Ltd., the parent company that offers an ETN. “Given the current climate of cryptocurrency regulatory environment in the U.S. ETN is a big win for bitcoin”.
Trade of One asset Bitcoin Tracker is similar to buying a American Depositary certificate reflecting the value of foreign asset in U.S. dollars. Investors can acquire so-called F-action, which means that, while the trades executed in U.S. dollars, their clearing is performed within the domestic market.
Unlike exchange-traded funds (ETF), ETN’s are debt instruments that are backed by their Issuer — often a Bank — and not by a pool of assets.
Bitcoin Tracker can be considered as One alternative to Fund Grayscale”s Bitcoin Investment Trust, which also offers a similar bitcoin offers. However, within Grayscale”s Bitcoin Investment Trust bitcoin is trading at a significant premium to underlying.
“I see bitcoin ETN as a competitive product,”said Radloff. “Our financial products not historically traded at a premium and are highly liquid”.
Recall that in early July the European exchange giant Flow Traders NV was included in the listing of the exchange notes with reference to the BTC and ETH — Exchange Traded Notes (ETN). This is the first occasion when a major player of the traditional world of Finance has launched operations at ETN related to cryptocurrency.
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