Sweden extends Bitcoin ETN to US investors
Bitcoin Tracker One, an exchange-traded note (ETN) that began trading on the Nasdaq Stockholm Exchange in 2015, has been quoted in US dollars since Wednesday under the ticker CXBTF, helping brokerages offer it to American investors, reports Bloomberg.
Previously only available for trading in euros and the Swedish krona, the notes are issued by XBT Provider AB, a subsidiary of UK-based CoinShares Holdings, which purchases the relevant amount of Bitcoin needed.
“Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona,” Ryan Radloff, chief executive officer of CoinShares, told Bloomberg. “Given the current climate on the regulatory front in the US, this is a big win for Bitcoin.”
“I do see this as a competitive product,” Radloff added. “Our products historically have not traded at a premium and are liquid.”
The availability of an ETN represents a soft opening of sorts for a crypto exchange traded fund (ETF). Unlike ETFs, ETNs are debt instruments that are backed by their issuers, often a bank, rather than a pool of assets and often focus on esoteric strategies that don’t easily fit in a fund.
US investors have long awaited crypto ETFs to gain regulatory approval and reach markets, but regulatory approval has been withheld amid concerns about manipulation and liquidity.
Recently, Cboe Global Markets’ Bitcoin ETF application decision was delayed until late September and last month saw the US Securities and Exchange Commission (SEC) deny Winklevoss-owned Gemini exchange’s Bitcoin ETF application for the second time.
Bitcoin Tracker One has fallen 51% this year, reflecting the persisting multi-month downtrend in the overall cryptocurrency market, according to Bloomberg.