At a time when the SEC is still debating whether to permit bitcoin-based ETFs in the US, Europe has been one step ahead thanks to the Swedish-based XBT Exchange Traded Notes (from provider CoinShares). And today, remaining one step ahead of the US, the same team behind the XBT ETN has launched the first ever ETN for Ether, the native token of the Ethereum platform, which will be listed on the Nasdaq Stockholm.
The two ETNs, COINETH:SS and COINETHE:SS are denominated in SEK and EUR respectively, and similar to the group’s bitcoin ETNs, the ether products are structured to track the price of ether, as determined by an index rate comprising the average of the 3 most liquid ether exchanges, daily. The factsheet for the ETN creator, CoinShares, can be found here.First-ever Ether ETP out today in Sweden from @xbtprovider as their Bitcoin ETN hits $280m, the one Mark Cuban uses.. pic.twitter.com/LwbMjvOZHa — Eric Balchunas (@EricBalchunas) October 11, 2017
No longer limited to OTC and/or other potentially "shady" exchanges, investors who want direct exposure to ether can now trade via a broker platform; Notably, the 2 listed trackers are the only route for European investors to add ether to their portfolio via an established exchange. Today's launch means that the NASDAQ now has 2 crypto-assets listed, Bitcoin and Ether, making it the only established exchange with multiple crypto-investment vehicles.
Unlike direct exchange trading, the ETNs will be traded during normal market hours on Nasdaq in Stockholm, and what is notable is that in some jurisdictions, the note may be eligible for investment via tax-advantaged retirement accounts. Bitcoin and Ethereum-based IRAs, anyone?
According to CoinShares, "The Ether listing is a great example of traditional finance (Nasdaq) working to innovate in collaboration with the emerging world of crypto-finance. This Standing in contrast to recent comments from some high-level traditional finan...