In another major milestone in crypto-finance, the team behind the first Bitcoin exchanged traded notes (ETNs), XBT Provider, which is now a CoinShares Company, has just listed the world's first two ether-tracking ETNs on Nasdaq Stockholm.
Ether is the unit of cryptocurrency used on the Ethereum blockchain. The two ETNs, COINETH:SS and COINETHE:SS are denominated in Swedish kronas and euros, respectively.
The products are very similar to the group's Bitcoin ETNs. The ether ETNs are structured to track the price of Ether, as determined by an index rate comprising the average of the three most liquid Ether exchanges daily.
The ETNs are traded during normal market hours on the Nasdaq Stockholm. In some jurisdictions, the note may be eligible for investment via tax-advantaged retirement accounts.
Historical Day for Cryptocurrencies
"Today is a historical moment for Ethereum and ether as an asset; and for the future of crypto-assets," said Ryan Radloff, co-principal at CoinShares. "It was a little over two years ago that the bitcoin ETNs began trading - offering investors exposure to Bitcoin via an established exchange for the first time. Today, we are able to bring Ether to the market and mark another major first."
"It is important to remember how far and how fast the space has matured in the less than eight years since this revolution began," Radloff adds.
Investors who want hassle-free exposure to ether can trade via broker or brokerage platform. The two trackers are the only route for European investors to add ether to their portfolio via an established exchange. Ether listing is a great example of traditional finance (Nasdaq) working to innovate in collaboration with the emerging world of crypto-finance.
This latest approval from a European exchange comes amid a moment where would be issuers in the U.S. are withdrawing their applications for Bitcoin and other crypto ETFs -- mainly while waiting for a robust and transparent futures market.
Crypto-assets are increasingly becoming mainstream investment vehicles and are emerging, ranging from ETNs on Nasdaq OMX to a rapid proliferation of funds; as of August, there were at least 55 cryptocurrency funds, including some recently-announced Bitcoin indices.
Major Win for Europe
"The listing of these two Eeher ETNs is a major win for European investors who have been requesting these products for over a year now.
"As of today, if investors want hassle-free exposure to the price movements of ether, they simply call their broker or trade on their normal brokerage platform - that's truly remarkable, says Laurent Kssis, managing director of XBT Provider by CoinShares. "We are thrilled to be able to deliver on investor demand via a safe, familiar route in Nasdaq OMX."
"We are happy to be able to provide investors with this new investment opportunity," says Helena Wedin, head of ETP Services Europe at Nasdaq. "Given the high interest we have experienced for the previous listings from XBT Provider it is exciting to now expand the offering into this unique exchange traded certificate."
"While it is important to acknowledge that exposure to an asset in its early stage of development, such as a digital currency, comes with a risk, trading ether on Nasdaq Stockholm provides investors with the protection provided by a regulated infrastructure, well-known marketplace and accessibility through their ordinary brokers." adds Wedin.
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