Fidelity Investments Opens Bitcoin ETN Access Via XBT Provider On Sweden’s Nasdaq
Fidelity Just Started Offering Access to the Bitcoin ETN
Fidelity Investments is one of America’s largest financial services companies. Last week, Fidelity started allowing customers to purchase Bitcoin Exchange Traded Notes (ETNs) offered by XBT Provider on Sweden’s Nasdaq exchange.
Fidelity Investments has over $2.4 trillion worth of assets under management. Now, Fidelity’s customers can more easily get exposure to bitcoin through the ETN, which functions in a similar way to an ETF. Investors purchase a share, and that money is used to purchase real bitcoin. The value of your share rises and falls based on the real value of bitcoin.
This isn’t the first time Fidelity Investments has made positive headlines in the crypto community. In June, Fidelity was spotted posting a job offer for a crypto or blockchain developer, for example. Earlier this year, Fidelity released a detailed blog post explaining their multi-year research into blockchain technology. That blog post was written by developer Hadley Stern, who claimed the company had been actively researching blockchain technology since 2014.
Now, Fidelity Investments has made headlines in the crypto community once again for offering customers access to the bitcoin ETNs. This significantly increases the market of bitcoin ETN
“Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona,” Ryan Radloff, CEO of XBT’s parent company, CoinShares Holdings Ltd., said in a statement to Bloomberg.
OTC Markets, which sells 10,000 securities through a network of broker dealers like Fidelity, is now listing the bitcoin ETN in US Dollars under the ticker of CXBTF. Previously, that ETN was only listed under EUR or SEK.
Any American With An Investment Account Can Directly Access Bitcoin
This is huge news for the crypto community because it means any American with an investment account can get direct exposure to bitcoin. Although ETNs are usually debt instruments, the bitcoin ETN seems from XBT Provider appears to function more like an ETF. In fact, as Trustnodes explains, “the bitcoin tracker appears to operate no different than an ETF” whatsoever.
Here’s how XBT Provider explains their bitcoin ETN, including the similarities between the ETN and the ETF:
“Bitcoin is purchased for money received through the sale of certificates which ensures that the certificates are hedged and structured to follow the price of bitcoin. The certificates are guaranteed by Global Advisors (Jersey) Limited.”
In other words, XBT claims to buy and hold the underlying asset – bitcoin. Any money used to purchase a share in the ETN will indirectly be used to buy bitcoin. Today, XBT Advisors has $434 million worth of assets under management. $300 million of those assets are in bitcoin, while $100 million is in ETH.
Right now, the Ethereum ETN is not yet listed in USD. However, that could come next.
XBT Advisors believes their ETN is a security, which has implications for institutional investors like pension funds. These institutions are limited to only around 10% of their investments being in non-securities and other assets.
Ultimately, this is big news for American investors – and the entire crypto community. Now, American investors can purchase a stake in bitcoin that functions in a virtually identical way to a bitcoin ETF: you buy a share, and that money is used to buy real bitcoin. Best of all, you can purchase this stake using your ordinary Fidelity Investments account. There’s no need to sign up for a crypto exchange or hold bitcoin yourself.
It’s not quite the approval of a bitcoin ETF, but Fidelity’s new bitcoin ETN offering is close.