US investors who are desperate to invest or trade in Bitcoin ETF can now trade Bitcoin Tracker One, an Exchange Traded Note (ETN) issued by a Swedish company XBT Provider AB, subsidiary of U.K.-based CoinShares Holdings. Technically, the ETN is not only listed, but also regulated in Sweden.
Starting yesterday, Bitcoin Tracker One is being quoted in U.S. dollars. It is traded under the ticker CXBTF, allowing brokerage firms to offer it to the US investors.
Therefore, the US investors can invest in Bitcoin without really purchasing them. Back in 2015, the ETN started trading on the Nasdaq Stockholm exchange in 2015. The ETN tracks Bitcoin price in SEK.
It should be remembered that ETNs are debt instruments, which are backed by issuers. This is one of the huge differences between an ETF and an ETN. The listing of Bitcoin Tracker One gives US investors an alternative to the Bitcoin exposure provided by Grayscale’s Bitcoin Investment Trust. Notably, Grayscale products trade at a considerable premium over the price of the underlying asset.
A US investor can trade Bitcoin Tracker One in the same manner as trading American depositary receipt, where an overseas asset is listed in US dollars. OTC Markets Group explained that investors can acquire these F shares by paying in US dollars, while the settlement, clearance and custody happens in the market (home) in which it is regulated.
Commenting on the listing, Ryan Radloff, the CEO of CoinShares Holdings Ltd., 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. Given the current climate on the regulatory front in the U.S., this is a big win for Bitcoin.”
