Nasdaq Stockholm introduced stock exchange notes (ETN) on bitcoins tied to the US dollar trading. The new product can replace bitcoin-ETF for a while, as investors in the US keep waiting for it to be released. As reported by Bloomberg, XBT Provider became the company that introduced the product.
The ETN is traded on the Swedish Stock Exchange under the ticker symbol CXBTF within Bitcoin Tracker One asset that was launched on the platform earlier in 2015.
The company explains how it buys and stores bitcoins for their customers through broker-dealers. Cryptocurrency is purchased with money they receive from selling certificates secured by Global Advisors (Jersey) Limited guarantee.
In June 2017 XBT Provider has entered into a partnership with Xapo, which deals with the "cold storage" of exchange’s notes on Bitcoin as per agreement. The same year ETN appeared on Nasdaq Stockholm, the note tracks Ethereum (BITFINEX: ETH/USD.BITFINEX) price.
WHY IS IT IMPORTANT?
- Exchange notes for bitcoins are depository receipts. At Nasdaq Stockholm, they were launched several years ago, but previously they were only available in euros and Swedish kronas. The new option in dollars will allow American residents with investment accounts finally gain access to the cryptocurrency while waiting for the opening of Bitcoin-ETF.
- The U.S. Securities and Exchange Commission (SEC) has not yet approved any application for the opening of Bitcoin-ETF. Previous applications have been rejected, but media sources in the department stated that the Commission was interested in opening such a fund. The nearest decision on bids for the bitcoin-ETF regulator is scheduled for August 23.