Swedish company to launch price tracker on a basket of cryptocurrenies

September 17, 2018
Chris Wheal

The company that created the first exchange-traded products to track bitcoin and ether prices is seeking to offer a new product that tracks the prices of a basket of cryptocurrencies.

XBT Provider is looking is seeking to increase its suite of cryptocurrency exchange traded products

Sweden’s XBT Provider plans to launch an exchange-traded product based on a basket of between five to 10 digital currencies before the end of the year, chief executive Laurent Kssis told Bloomberg in an interview.

He added that not only was there a gap in the market for such a product, but that demand from clients was becoming increasingly audible.

“They are telling us ‘I’d just like blended exposure to five or 10 cryptocurrencies,” he said.

Suspension in the US

While XBT Provider has offered exchange-traded products across most regions since 2015, the Securities and Exchange Commission (SEC) earlier this month suspended trading in the company’s Bitcoin Tracker One and Ether Tracker One in the US.

The SEC, which has denied applications from several companies to list exchange-traded funds on US indexes, said the trackers caused confusion with US investors.

It said in a statement: “For example, the broker-dealer application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterise them as ‘Exchange Traded Funds’. Other public sources characterise the instruments as ‘Exchange Traded Notes’.”

Kssis declined to comment to Bloomberg on the suspension.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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