by Joseph Young
XBT Provider AB, a Stockholm-based subsidiary of KnC Group AB, has launched a bitcoin exchange-traded note called “Bitcoin Tracker One” on Nasdaq Nordic in Stockholm, with the approval of the Swedish FSA (Finansinspektionen).
Over the first few days of its launch, Bitcoin Tracker became one of the top three most-traded and active exchange traded notes on Nasdaq Stockholm, with increasing popularity among bitcoin enthusiasts and investors.
“Bitcoin Tracker One has during periods been among the top three most traded ETNs on Nasdaq Nordic since launch. With Bitcoin Tracker EUR we hope to further eliminate the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe will be the future of money,” announced Alexander Marsh, Chief Executive Officer of XBT Provider in a press release.
The issuer XBT Provider is a part of global bitcoin company KnC Group AB, a bitcoin transaction processing technology provider. With the support of the KnC Group, XBT Provider was able to establish its connections with the local law agencies and the Swedish FSA.
“Bitcoin Tracker One was the world’s first financial instrument that provided consumers and institutions the possibility to invest in bitcoins without holding coins themselves. It proved that XBT Provider could launch an instrument with high liquidity that very accurately tracked the price of bitcoin. Bitcoin Tracker EUR will give the investors all the benefits of Bitcoin Tracker One, and also offer a currency they are used to invest in,” said Staffan Helgesson, General Partner at Creandum and Board Member of XBT Provider.
Bitcoin Tracker One
Bitcoin Tracker One represents the value of USD per bitcoin, after exchange and conversion fees. The value is determined by the average bitcoin price listed by the world’s three largest bitcoin exchanges – ItBit, Bitstamp and Coinbase.
Bitcoin Tracker One is traded like any other share or asset listed on the Nasdaq Exchange Stockholm. The asset can be purchased by anyone with a Nasdaq account, which can be acquired through a bank, advisor or online stock broker.
However, future investors would still have to account for the volatility of bitcoin price and take the necessary risks to purchase bitcoin using the tracker.
“Since the Certificates are designed to track the movement of Bitcoin in relation to the USD, the value of the Certificates will depend on the performance of Bitcoin and changes to the USD rate as the underlying currency. The volatility of the USD will therefore have an impact on the investment of each investor and each investor may therefore lose part of or the investment,” XBT Provider warned in Bitcoin Tracker One’s base prospectus.