Investors in the United States are eagerly and patiently waiting for the SEC to make a decision on the pending Bitcoin ETF that has been filed by the CBOE exchange. Many believe that an ETF would be a safer, more regulated option than to dive into crypto through the numerous crypto exchanges. An Exchange Traded Fund (ETF) is a safer option for it is a type of fund that owns the underlying asset – in this case Bitcoin – and divides the ownership of those assets into shares. Shareholders indirectly own these assets and are entitled to a proportion of the profits of the fund and are protected by the law, hence making it safer for individual traders.
The American public has posted over 1,300 comments on the SEC website in support of a Bitcoin ETF. One of the comments from the public on the SEC’s website in support of the ETF best exemplifies why individual investors want it:
“This ETF satisfies the SEC’s concerns in protecting investors and maintaining fair markets. It is 100% insured and will target institutional investors who are capable of making informed investment decisions. In addition, this ETF will be backed by actual bitcoins. This will reduce concentration of bitcoin by “whales” and further distribution. By opening the market to more investors, an ETF will provide liquidity and transparency to the bitcoin market which will minimize the ability to manipulate the market.”
So what other option do individual US investors have as they wait for a Bitcoin ETF?
Bloomberg recently reported that a Bitcoin Exchange Traded Note (ETN) has been available for purchase on the Nasdaq Stockholm exchange since 2015. ETNs are debt instruments that are backed by their issuers — often a bank — rather than a pool of assets and often focus on esoteric strategies that don’t easily fit in a fund.
And now American investors can purchase this Bitcoin ETN more efficiently from as early as August 22nd, though it will still be listed and regulated in Sweden. The product, called Bitcoin Tracker One, will now be quoted in U.S. dollars under the ticker CXBTF thus helping brokerages to offer it to American investors.
This ETN is one more Bitcoin product that the SEC can acknowledge and benchmark in their decision to pass a Bitcoin ETF in the United States.
Ryan Radloff, the CEO of CoinShares Holdings Ltd., the parent of the company that offers the ETN, had this to say with regards to the 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. Given the current climate on the regulatory front in the U.S., this is a big win for Bitcoin.”
It is also a big win for the US investors who wanted a fully regulated product that has Bitcoin as an underlying asset. An ETN clears the path for a Bitcoin ETF approval by the SEC.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
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