by Joseph Young
Barry Silbert-led Digital Currency Group’s Bitcoin Investment Trust has attracted mainstream investors in established American stock exchanges such as the Nasdaq since mid-2015, boasting substantially and rapidly increasing share prices and trading volumes.
This time, traditional investment vehicle operator XBT Provider has begun to dominate the European market with their Bitcoin exchange traded nodes (ETN) Bitcoin Tracker One and Bitcoin Tracker Euro.
Bitcoin Tracker Euro was launched on October 5 on the Nasdaq Nordic exchange, with the ticker Bitcoin XBTE. ISIN: SE0007525332. Investors with a brokerage account connected to the Nasdaq Nordic exchange have been allowed to trade the BTN, which mirrored the value of bitcoin in real time.
According to a post on the XBT Provider site on October 5, 2015, “Bitcoin Tracker EUR is designed to mirror the return of the underlying asset, U.S. dollar (USD) per Bitcoin. The product is an exchange traded note designed to track the movement of the underlying asset after fees.”
Since its launch in 2015, Bitcoin Tracker EUR and Bitcoin Tracker One have become the most traded and popular ETNs on Nasdaq Nordic. XBT Provider CEO Alexander Marsh explained that over 500 small investors and institutions have invested in the two certificates or ETNs, managing over US$85 million in capital.
“It has gone well! Many days we have been the most traded ETN: one on the Nasdaq Nordic. And the one who was there from the start have seen their investment double in value. We believe the value of Bitcoin could double again in 2016,” said Marsh.
In a more technical level, the ETNs of XBT Provider follows the price Bitcoin precisely. The difference however is, the additional 2.5% annual management fee charged to its investors and clients. Marsh, however, is working with the XBT Provider team to reduce the overall costs to investors in Sweden in the upcoming months.
He further emphasized the upward trend of the price of Bitcoin, and predicted that Bitcoin will double in value in 2016. If that happens, Marsh expects to see a major increase in the capital and trading volumes of the firm’s two ETNs. He says,
“Among other things, the European Court said that bitcoin will be considered as a currency and [is] not subject to VAT. Furthermore, three new regulated bitcoinbörser registered in the US over the past three months. They are ITbit, Coinbase Exchange and Gemini, started by the Winklevoss brothers.”
The unexpected performances of bitcoin ETNs and traditional investment vehicles managed by XBT Provider and Grayscale Investment have begun to eliminate the barrier between traditional investors and digital currencies.