American Investors Have the Green Light to Buy Bitcoin Exchange-Traded Notes
As of 15 August, US investors are able to buy Bitcoin exchange-traded notes (ETN) via online or offline intermediaries such as brokers or financial institutions.
Thomas Cohen, the co-founder of Fundstrat Global, shared with his Twitter followers on 15 August that Bitcoin Tracker One (CXBTF) is now available in US Dollars, bearing in mind that CoinShares’ product has long been accepted and regulated in Sweden.
@CoinSharesCo buys #BTC with each share issuance, which means this ETN functions similarly to an ETF despite differences in structure. See excerpt from their Factsheet… Hence, as shares rise/AUM grows, $CXBTF is buying Bitcoin. pic.twitter.com/pjv7COUDoh
— Thomas Lee (@fundstrat) August 15, 2018
The news comes as a solution for investors interested in direct investment in Bitcoin (BTC) to enter the crypto market.
“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, CEO of CoinShares Holdings Ltd., told Bloomberg. “Given the current climate on the regulatory front in the US, this is a big win for Bitcoin.”
The product, known as Bitcoin Tracker One, was listed on the Nasdaq Stockholm exchange since 2015. The new service is considered to be a more efficient substitute for the so-called ETF or Exchange-Traded Fund that appears to be avoided by US regulatory bodies for several reasons that are powered by suspicions.
We would like to remind you that the Bitcoin ETF proposal issued by billionaires Tyler and Cameron Winklevoss was rejected last month by US authorities while the decision for another similar project created by VanEck Associates Corp. and SolidX Partners Inc. was postponed until September.
Acquisition of Bitcoin Tracker One is done in the same way as for an American depositary receipt. Investors that buy F shares can be assured that transactions made in U.S. dollars are settled, compensated, and kept under the supervision of investors’ home market, reported OTC Markets Group.
Compared to the ETF, the exchange-traded notes are debt instruments, which are assisted by their issuers, usually a financial institution, rather than “a pool of assets”, wrote Bloomberg.
“I do see this as a competitive product,” claimed Radloff, CoinShares Holdings Ltd. CEO. “Our products historically have not traded at a premium and are liquid.”