We know how important a Bitcoin ETF is going to be for the markets and for Bitcoin in general, yet as it stands, no such thing exists. After total rejection by the SEC, we now have around 9 ETF applications pending, though none of us are very optimistic about the final destination for these.
Perhaps then, itâs time to start looking for new ventures elsewhere?
Introducing Bitcoin Tracker One
Bitcoin Tracker One is an âExchange Traded Noteâ a Bitcoin ETN. It tracks Bitcoin against USD and exists through a partnership between Swedish firm XBT Provider and a UK firm called Global Advisors Holdings Ltd. At present, Bitcoin Tracker One trades on Nasdaq Stockholm.
Okay, but what is an ETN?
According to CNBC back in January 2018:
"An ETN is an unsecured debt instrument that promises to pay the pattern of returns of the bitcoin price. Ironically, despite being an unsecure instrument, the XBT product tracks the spot price of bitcoin by holding the actual currency and forward contracts in case of a liquidity shortfall. The ETN structure was the best route to bring the products to market. As a result of using this structure to bring the product to market, investors have been able to gain exposure to the price movement of bitcoin since 2015. This stands opposed to the U.S., where most investors are still waiting for access to bitcoin exposure via their normal brokerage account."
See more for yourself, here. Â
So, why is the Bitcoin ETN Important?
Itâs a complicated area, but the purchase of ETN shares has a direct impact on Bitcoin. Thomas Lee of Fundstrat believes that the structures of this ETN and the plans for ETFâs are slightly different, but they have a similar outcome, they essentially both do the same thing.
Lee recently Tweeted this image which explains the concept a little better -
Image sourced from - @fundstrat
According to Cryptoglobe, Ryan Radloff, the CEO of CoinShares Holdings Ltd, one of the shareholders of XBT Provider has said:
âEveryone thatâs 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.â
See more for yourself, here.
If thereâs two things you can take from this is that first of all, a lot of people are excited about this. Secondly, itâs putting pressure on the SEC. They canât keep disregarding ETF applications, when ETNâs are live and running safely across the Atlantic can they?