United States Investors can now invest in Bitcoin Exchange Traded Funds by buying an Exchange Traded Note (ETN) called Bitcoin Tracker One on the NASDAQ stockholm exchange in Sweden.
The product was launched in 2015 but is available to American investors now despite it being listed and regulated under Swedish law. It was first listed in US dollars on August 15, 2018.
For several months this year, investors have been waiting for SEC approval to trade ETF products proposed by the Winklevoss Twins, CBOE Global Markets, SolidX Partners and VanEck solutions. All of these proposals have either been rejected or delayed to a future date for a solid decision.
Crypto ETFs potentially allow investors to trade in crypto without holding crypto assets as they are settled through cash. For crypto investors who don’t want to actually invest in crypto assets,this ETF rejection comes as a delay.
Until now, investors could buy the Swedish ETN product only using Euros or Swedish Kora, but with the listing of Bitcoin Tracker One in USD, a surge in the product interest is expected to take as American investors will get a chance to invest in ETNs.
The differentiating factor of an Exchange Traded Note from an Exchange Traded Fund is that the former is backed by its issuer, which is usually a bank, not an asset pool. It also differs in terms of market strategies. For American investors, what this means is that regardless of the government’s regulatory position, they can now access a foreign listed crypto market asset that is listed in USD.
Ryan Radloff, CEO of CoinShares Holdings Ltd., the parent of XBTProvider, the company offering the ETN, 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.