CoinShares Allows US Investors to Buy Bitcoin Exchange-Traded Notes (BTC ETN)
There is an ETN that Allows US Citizens to Invest in Bitcoin (BTC)
Cryptocurrency enthusiasts and investors all over the world were waiting to invest in the first bitcoin exchange traded fund. As we reported in the past, the famous proposal of a bitcoin ETF presented by VanEck and SolidX has not been approved by the U.S. Securities and Exchange Commission (SEC).
ETFs are tradable instruments that are listed on the stock market and that allow investors to trade assets and commodities. For example, with ETFs, it is possible to invest in copper and gold.
But… there is another financial instrument available for investors that want to place their funds in Bitcoin.
Since December of the last year, an ETN in Sweden was released to the market operated by XBT provider. And yes, it has proven to be a good investment tool due to the fact that it increased its volume surpassing 80% of the ETFs in the United States.
An ETF expert known as Eric Balchunas, explained back in December:
“Sweden’s bitcoin ETN is now bigger and trades more than about 80% of US ETFs. It hit $700m in aum today while trading $220m this week (insane #s for Sweden).”
Several experts in the cryptocurrency world, including BKCM founder Brian Kelly and Thomas Lee, believe that an ETF in the United States would legitimize Bitcoin and the cryptocurrency market as a whole. In this way, new individuals would invest in Bitcoin due to the fact that it would now be possible.
the same ETF that has been mentioned by Balchunas in 2017, has opened in US markets using the ticker CXBTF. This is why, Ryan Radloff, CEO of CoinShares said that this is a monumental accomplishment.
ETNs are able to provide liquidity and possibilities to investors that want to invest in Bitcoin in the stock market.
In 2017, the billionaire investor Mark Cuban, owner of the NBA team Dallas Mavericks, said that he facilitated his first investment in Bitcoin using the XBT Provider Bitcoin ETN. He said that Bitcoin work as most stocks because it does not provide ownership rights or voting rights, that means that they it is only possible to buy and sell the specific asset according to the supply and demand.
@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