"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. So, why is the Bitcoin ETN Important? It’s 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 ETF’s 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:
“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.”See more for yourself, here. If there’s two things you can take from this is that first of all, a lot of people are excited about this. Secondly, it’s putting pressure on the SEC. They can’t keep disregarding ETF applications, when ETN’s are live and running safely across the Atlantic can they?