The Exchange Traded Note (ETN), Bitcoin Tracker One, is now available for trading in the United States under the symbol CXBTF. Bitcoin Tracker One is a regulated security that institutional investors can use to invest in Bitcoin. This is a major win for Bitcoin, since now investors can buy Bitcoin through stock trading platforms.
KnCMiner is behind Bitcoin Tracker One, although it is a separate company. Originally, Bitcoin Tracker One was listed on Nasdaq Stockholm, Sweden in May 2015 and was available for purchase with EUR or Swedish krona (SEK). Now, investors in the US can buy CXBTF with US dollar on an over the counter (OTC) market and it is classified as a foreign debt instrument.
Bitcoin Tracker One tracks the price of Bitcoin and contracts are settled in Sweden for EUR or SEK regardless if they are bought or sold for USD. It is very important to note that this ETN is settled for fiat and not Bitcoin. This is similar to how the Bitcoin futures on CME and CBOE in Chicago are purchased and settled with cash.
However, the provider of this ETN, XBT provider AB, purchases Bitcoins as each ETN contract is purchased, so this ETN will have a direct impact on Bitcoin’s demand and spot price. This is major news that there is now a route for institutional investors in the United States to directly impact Bitcoin demand and spot price.
Crypto investors and enthusiasts throughout the world were hoping for the Winklevoss Bitcoin Trust or VanEck SolidX Bitcoin exchange-traded funds (ETFs) to be approved since those ETFs held Bitcoins in reserves for each contract purchased. Therefore, as institutional investors purchase these ETFs, it should directly increase Bitcoin price.
Some crypto experts are calling the listing of the first Bitcoin ETN a consolation prize. It appears some stock trading brokerages are blocking this ETN or making it difficult, which is just an indication that the classic financial world has anti-Bitcoin elements. However, this listing is brand new and hopefully, over time, any blocks will be removed due to customer demand.
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