Until now, investors could only buy into the Swedish ETN product using EUR or SEK, but with the listing of Bitcoin Tracker One in US dollars, a significant increase in interest in the product is expected.
US investors can now invest in the Bitcoin Exchange Traded Funds (ETF) through an Exchange-Traded Note (ETN) called Bitcoin Tracker One on the Nasdaq Stock Exchange in Sweden, according to a Bloomberg report. The product, which was listed in 2015, is now available to US investors, despite being listed and regulated under Swedish law after it was listed in USD (USD) for the first time on Wednesday, 15 August 2018.
For several months, investors have eagerly awaited approval from SEC and CFTC to trade ETF products proposed by CBOE Global Markets, Winklevoss Twins, SolidX Partners and VanEck Associates. Each of these proposals has either been rejected or delayed to a future date for a specific decision.
Crypto ETFs allow potential investors to trade cryptocurrency without having the actual crypto share. For potential crypto investors who do not want to buy the actual crypto asset, but continue to wonder about the cryptocurrency, the regulatory delay in the United States effectively prevented them from entering the market.
Until now, investors could only buy into the Swedish ETN product using EUR or SEK, but with the listing of Bitcoin Tracker One in US dollars, a significant increase of interest in the product is expected.
ETN as ETF option
Listed securities are different from a listed fund as opposed to the latter; it is supported by the issuer, which is usually a bank, rather than an active pool. Market strategies are also significantly different from the fund. In practice, it means that US investors are independent of the government’s regulatory position, and now have access to a foreign-listed cryptocurrency transfers in USD.
Investors are now able to buy F shares, which means that US dollars are used to trade while the other moments take place in Sweden.
Ryan Radloff, Managing Director of CoinShares Holdings Ltd., XBTProvider’s parent company, which offers ETN, told Bloomberg that the development “is a big win for Bitcoin.”
“Everyone who invests in dollars can now get exposure to these products before they were available only in euros or Swedish kroner,” he added.
The Bitcoin Tracker One is down 51 percent in 2018 along with a general decline in the crypto market, but a cash flow is is expected from US institutional investors. This latest development can also create a more convincing case for US regulators to approve a crypto ETF by establishing a positive example of regulated crypto trading.