Bitcoin (BTC) ETNs Owner Mulls New Crypto Exchange-Traded Products
XBT Provider AB, which manages Bitcoin Tracker One (CXBTF), considers new ETPs and new markets after the recent temporary US ban on the CXBTF.
Swedish XBT Provider, which owns several virtual coin-based financial instruments on the NASDAQ Stockholm stock exchange, has announced a plan for a new basket of cryptocurrency exchange-traded products (ETPs) and new markets, Bloomberg reported on Sunday. The decision came a week after the US Securities and Exchange Commission (SEC) temporarily suspended trading of two of the company’s main products, the exchange-traded notes (ETNs) Bitcoin Tracker One and Ether Tracker One.
XBT Provider did not reveal more details about the upcoming ETPs. The new instruments will include five to ten virtual currencies because the market is looking for ‘blended exposure’ to cryptos, the company’s CEO Laurent Kssi told Bloomberg. They will be launched in Sweden at the end of the year.
Ryan Radolf, CEO of XBT Provider’s parent company CoinShares, explained that the company is now searching for new markets after the US regulatory ban.
“Other exchanges and jurisdictions are now calling us, wanting our knowledge and know-how to bring these assets to the market. So we’re evaluating other markets right now.”
CoinShares expects a wide range of assets to become tokenized and based on the BTC price in the future as currently the immaturity and volatility of Bitcoin stop this process.
"We’re going to start seeing, over the next few years, the emergence and birth of security tokens," Radloff said. “And you’ll see a whole onslaught of equities, debt, even currencies and other commodities being tokenized.”
UK financial company CoinShares, through its Swedish subsidiary XBT Provider, manages several Bitcoin (BTC) and Ethereum (ETH)-linked products, listed on NASDAQ Stockholm, including Bitcoin Tracker One, Ether Tracker One, Bitcoin Tracker Euro, and Ether Tracker Euro.
Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) got quotes in US dollars last month, which made both instruments available as foreign over-the-counter (OTC) products to the United States. The move sparked great enthusiasm among US investors given the SEC’s indecision on crypto-focused exchange-traded funds (ETFs) applications.
ETNs are a soft version of the far more popular ETFs. The notes are a debt instrument backed by its investors, while ETFs are backed by an asset pool.
However, last week, SEC, halted trading in CXBTF and CETHF on investor protection grounds. The move is temporary and is in force only for the US.