XBT Provider AB Pauses Exchange-Traded Bitcoin Tracker Product Due to Market Conditions
As per an all new report released by Bloomberg earlier today, the developer of the world’s first exchange traded Bitcoin tracker has decided to put its plans of releasing a basket of cryptocurrencies on hold for the time being.
This is because there has been massive uncertainty surrounding BTC and its off-shoots ever since the recent split in the currency’s blockchain took place.
More on the matter
Some of our readers may remember that XBT Provider AB has not been able to launch its exchange traded product (based on a basket offering) since the end of 2018. However, as per the firm’s CEO Laurent Kssis, they are now waiting to see “which way the cryptocurrency community moves before acting”.
In addition to this, a spokesperson for Stockholm-based XBT said that he wasn’t even aware when the aforementioned offering was able to gain regulatory clearance from the Swedish financial supervisory authority back in May.
On the matter Kssis was quoted as saying:
“It’s important to ask how the community is responding to the split and who’s going to support one asset versus the other,” said Kssis. “If we get it wrong, these assets will drop and if they’re part of the basket we can’t go back because it’s in the final term-sheet.”
When Exactly Does a Crypto-Fork Take Place?
For those of our readers who may not be aware, a fork most commonly happens when an altcoin’s blockchain splits into “one underlying and one dominant asset”. This may occur due to a number of factors such as:
- Need for an enhanced security framework
- Protection from hackers and other third-party miscreants
In a similar vein, it should also be noted that while a soft fork can be made compatible with the older version of a particular blockchain, a hard fork can not.
In relation to the subject, Mike McGlone of Bloomberg Intelligence went on to state:
“Hard forks are indicative of some of the primary issues in cryptos pressuring prices. The overall issue is rapidly increasing crypto supply and negative signals for potential institutional investors of how still nascent the market is.”
In rounding off this article, it should be remembered that since the start of last year, the crypto market as a whole has lost over $500 billion.
This in part has happened because mainstream adoption of digital currencies has failed to gain traction as expected. Not only that, many ICOs have also failed to live up to their initial hype.