Nasdaq Stockholm lists Bitcoin and Ether exchange-traded notes
Nasdaq Stockholm has announced that 21Shares has listed their first two bodily backed exchange-traded notes (ETNs) on the Swedish buying and selling platform.
The two devices listed, with Bitcoin (BTC) and Ether (ETH) as underlying property, characterize a brand new phase for ETNs — a sort of unsecured debt safety that tracks an underlying index of equities and trades on a significant exchange.
According to the announcement, the brand new ETNs will present buyers entry to funding alternatives in cryptocurrencies corresponding to Bitcoin and Ether.
Helena Wedin, European head of exchange traded merchandise at Nasdaq, says that exchange-traded notes enable one to spend money on non-traditional property whereas sustaining the transparency of a regulated market. She provides that “we are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer.”
According to the press release, most traditional banks and brokers allow investors to trade all ETNs listed on Nasdaq Stockholm. This is a first which opens up new possibilities to investors interested in investing in cryptocurrencies, but who are not comfortable doing so on unregulated exchanges.
Related: ETN vs. ETF: Which Is the Investor’s Dream?
The cryptocurrency market has experienced a steep rise in valuation throughout the previous year. Despite some recent price dips, interest in cryptocurrencies continues to be high.
One reason for this sustained interest may be the possibility of increased institutional investment in the market. As institutional investment in cryptocurrencies increases, we’ll likely see more products such as ETNs being listed on regulated exchanges. As reported by Cointelegraph in September, VanEck introduced Solana and Polkadot ETNs on Deutsche Boerse’s Xetra.