Bitcoin ETN makes regulated trading debut

2 min read
Helen Bartholomew

Bitcoin tracking funds have made their debut on a regulated exchange as Bitcoin Tracker One began trading over Nasdaq this week.

The certificates are issued by XBT Provider – a Swedish-domiciled issuer that is part of Bitcoin transaction processing technology provider KNC Group – and began trading on Monday as Bitcoin XBT.

Stockholm-based brokerage, Mangold Fondkommission, is a dedicated market maker for the new notes, which are traded in Swedish Kroner.

“By enabling this easy and secure way to invest in Bitcoin we hope to have eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe to be the future of money,” said Alexander Marsh, CEO of XBT Provider.

The product is designed to mirror the return of the crypto-currency in US dollars and has been approved for trading on the regulated market by the Swedish FSA.

“All asset classes can benefit from the transparency and price formation functionalities of lit market trading,” said Adam Kostyal, senior vice president and head of European listings at Nasdaq.

“This should therefore help inform institutional and retail investors alike who are seeking investment exposure related to Bitcoin through products like this.”

Although it represents the first tracker linked to the digital currency to trade on a registered platform, a number of OTC versions of the product have gained traction in recent months.

The Bitcoin Investment Trust, offered by Grayscale, is currently traded on an over-the-counter basis, via OTCQX, which is operated by the OTC Markets Group. The trust has garnered US$31m of assets under management since inception in September 2013.

In addition, the Winklevoss Bitcoin Trust exchange traded fund is awaiting regulatory approval from the SEC to trade on Nasdaq.