In a move to make the cryptocurrency more accessible to investors, Sweden’s Nasdaq exchange approved the inclusion of an exchange traded note (ETN) facilitating bitcoin trading and investment. Bitcoin Tracker One, which was launched by XBT Provider AB, will be launched on the exchange next month.
This makes the ETN the first bitcoin-based item to be listed on the Swedish exchange, putting the cryptocurrency closer to mainstream acceptance in the financial markets. “By enabling this easy and secure way to invest in bitcoin we hope to have eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe to be the future of money,” mentioned XBT Provider AB CEO Alexander Marsch.
Bitcoin Trading Rules
Bitcoin trading through this ETN is similar to how other securities are being traded. Clients must have an account on the exchange, opened through a bank or an online broker. XBT Provider AB will act as a market-maker in taking an opposite position to trades opened, as the company will hedge all bitcoin trading sales with an equal value in the market.
We are aiming to do all hedging in the open market but have the option to access bitcoin liquidity from KnC Group in case of an emergency,” explained Johan Wattenström, head of trading at KnCMiner, which owns XBT Provider AB.
Wattenström added that the company runs a secure multi-layer process for handling and safe-keeping bitcoins, emphasizing that they are prioritizing security procedures. According to the company’s safety policy, a small part of the holdings can be kept on bitcoin exchanges. If deemed necessary additional coins can be held on a multi-signature hot wallet and all holdings over a threshold will be kept in safe storage.
Bitcoin enthusiasts welcomed this news positively, looking forward to more funds being added for trading on the exchange.
This makes the ETN the first bitcoin-based item to be listed on the Swedish exchange , putting the cryptocurrency closer to mainstream acceptance in the financial markets. “By enabling this […]