XBT Provider Suspends Launch of Altcoins ETN Due to Crypto Market Uncertainty
XBT Provider AB, the issuer of Bitcoin and Ether exchange traded products listed on the Nasdaq stock exchange in Sweden, has announced it’s putting plans to launch altcoin products on hold, citing the current market volatility and uncertainties, reports Bloomberg on February 13, 2019.
No More Altcoin Basket for Now
As reported by BTCManager in September 2018, XBT Provider AB, Sweden’s favorite Bitcoin exchange traded notes (ETN) creator, announced plans to start offering users another exchange traded product based on a basket of five to ten cryptoassets.
However, fast forward to 2019 and the firm has now made it clear that it’s no longer looking towards that direction at the moment as it needs to gain more knowledge about crypto hard forks and community politics in order not to list an altcoin that would be adversely affected by a chain split.
Commenting on the matter, CEO of XBT Provider AB, Laurent Kssis stated:
“It’s essential to know how the crypto community is responding to the split and who’s going to support one asset versus the other. If we don’t make the right decision, 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.“
The Bitcoin Cash Battle of Supremacy
As reported by BTCManager on November 15, 2019, Bitcoin Cash (BCH) the altcoin created by a split on the Bitcoin network in August 2017, experienced its own hard fork, giving birth to two versions of itself, Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV).
Although at press time, both digital assets are still alive, however, BCHABC is trading at $227.31, with a 24-hour trading volume of $58,429,525 while the price of BCHSV, on the other hand, sits at just $64.72 with a trading volume of $56,562,048 as seen on CoinMarketCap.
If data released by cryptocurrency data analytics platform, DataLight https://mobile.twitter.com/DataLightMe is anything to go by, in 2018 alone, there were over nine Bitcoin hard forks, including Bitcoin Zero, Bitcoin Adult, Bitcoin Incognito and others but none of them succeeded in gaining broad adoption.
Against that backdrop, the decision of XBT Provider to halt the launch of more altcoin ETNs appears a forward-thinking maneuver.