Even as regulatory authorities in the country make up their minds about bitcoin ETFs, U.S. investors interested in investing in related products now have the option of trading in bitcoin ETNs listed on Nasdaq Sweden. (See also: Americans Can Now Trade A Swedish Bitcoin ETN.)
Listed on the Swedish exchange, the Bitcoin Tracker One is now available to U.S. investors as an American Depository Receipt (ADR). (See also: Introduction To American Depository Receipt.) It was launched on May 18, 2015 and has a leverage ratio of 1:1. Leveraged ETNs track an underlying index or future or price for a commodity. The ETN has been approved by the Swedish FSA and holds bitcoin in custody with certificates guaranteed by Global Advisors (Jersey) Limited.
“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,” said Ryan Radloff, chief executive officer at CoinShares Company. (See also: Traditional Stock And Forex Brokers That Allow Crypto Trading).
Regulatory Bottlenecks for Bitcoin ETFs
The going has been tough for bitcoin ETFs. The SEC has rejected applications for bitcoin ETFs for the last couple of years. In the first half of this year, the agency outlined its concerns for bitcoin ETFs. These concerns encompass a broad range and include everything from absence of oversight at cryptocurrency exchanges to custody problems for bitcoin. (See also: Why Is The SEC Afraid Of Bitcoin ETFs?)
Meanwhile, bitcoin has gained steady mainstream traction among investors. Despite the product’s novelty and regulatory concerns, bitcoin has also become popular with institutional investors. For example, investment bank Goldman Sachs has made notable hires related to cryptocurrencies and is reportedly starting a bitcoin trading desk.
Bitcoin Investment Trust (GBTC) is the only crypto-related ETF trading in the OTC markets currently. The ETF, which tracks the price of bitcoin, has had a volatile trajectory and is down by 65% this year, as of this writing. Bitcoin Tracker One is similarly down by 50.84%, as of this writing.
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