By CCN: Börse Stuttgart, the second biggest stock exchange in Germany and the ninth largest in Europe, has approved the listing of litecoin and XRP exchange-traded notes (ETNs).“For the first time in Germany, investors can now buy and sell exchange-traded notes (ETNs) based on the cryptocurrencies Litecoin and Ripple (XRP). The four securities issued by XBT Provider in Sweden track the price of the two cryptocurrencies in relation to the euro and the Swedish krona,” the Börse Stuttgart team said.
Similar to exchange-traded funds (ETFs), ETNs operate as strictly regulated, transparent, and protected instruments that can be used by investors to invest in various assets.
XRP ETNs are now a reality in Germany. | Source: Shutterstock
The launch of cryptocurrency-backed ETNs on Börse Stuttgart is expected to increase the liquidity of litecoin and XRP, especially amongst accredited investors and potentially institutions.Raising the Quality of Liquidity
Cryptocurrency exchanges may be compelling for many individual users due to their liquidity and ease of access. But, for some, the lack of investor protection remains a roadblock.
In late 2017, at the Vanity Fair New Establishment Summit in Los Angeles, billionaire investor Mark Cuban told Bloomberg that he invested in bitcoin through an ETN on a Swedish stock exchange.
Cuban said:It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply demand. I have bought some through an ETN based on a Swedish exchange.
The same company behind the bitcoin ETN on the Swedish stock market is overseeing litecoin and XRP ETNs on Börse Stuttgart, which would provide accredited investors with an alternative platform othe...