Swedish bitcoin exchange-product now availble to US investors
Investors who were disappointed by the decision of US market regulators to deny approval of New York-listed bitcoin exchange-traded funds (ETFs) might find consolation in a Swedish product that is being targeted at US investors.
Last month the US Securities and Exchange Commission (SEC) upheld its decision to deny the listing of a bitcoin ETF on the Bats Exchange, backed by the Winklevoss twins. Earlier this month, the SEC postponed its decision on a further two ETF applications until September.
The SEC says it is acting in the best interests of investors as a bitcoin ETF would grant easy access to an asset class that is open to fraud and manipulation.
Bitcoin Tracker One
However, a so-called “soft” alternative has been trading on Sweden’s Nasdaq Stockholm exchange for three years.
Bitcoin Tracker One, an exchange-traded note (ETN), began being quoted in dollars under the ticker code CXBTF on Wednesday, a move considered to be a gateway for access by US investors.
An ETN is a structured product issued as senior debt notes rather than being based on an underlying commodity or asset like EFTs. But, essentially they are both traded on exchanges like stocks and track the progress of a particular asset or group of assets.
Ryan Radloff, chief executive of CoinShares, and part of the company supporting the ETN’s development, said: “Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona. Given the current climate on the regulatory front in the U.S., this is a big win for Bitcoin.”