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 finance executives who are apparently more dismissive of crypto-finance."
Predictably, the people behind the ether ETN - XBT Provider by CoinShares - were delighted with getting their product to market first: “The listing of these two Ether ETNs is a major win for European investors who have been requesting these products for over a year now. As of today, if investors want hassle-free exposure to the price movements of ether, they simply call their broker or trade on their normal brokerage platform - that’s truly remarkable. We are thrilled to be able to deliver on investor demand via a safe, familiar route in Nasdaq,” says Laurent Kssis MD of XBT Provider by CoinShares.
“Today is a historical moment for Ethereum and ether as an asset; and for the future of crypto-assets. It was a little over two years ago that the bitcoin ETNs began trading – offering investors exposure to bitcoin via an established exchange for the first time. Today, we are able to bring Ether to the market and mark another major first. It is important to remember how far and how fast the space has matured in the less than 8 years since this revolution began,” says Ryan Radloff, Co-Principal at CoinShares.
“We’ve stated before that as a group, CoinShares is committed to delivering world-class research and professional-grade access to crypto-assets. Today marks a critical step in delivering on that mission. This launch is the result of a tremendous amount of hard-work from the CoinShares team, key partners and our counterparts at Nasdaq. We could not be more proud to bring this latest set of pioneering product to the market,” says Daniel Masters, Co-Principal at CoinShares.
“This is an important moment for investors as they now have access via a safe and familiar route to gain exposure to the price movements of Ether. Nasdaq has consistently proven to be a great partner with respect to bringing these new technologies to market and this latest move is further evidence of their commitment to innovation. This product has been highly requested by investors and we at the CoinShares Group are excited to play a role in bringing it to market,” says Laurent Kssis, MD at XBT Provider, A CoinShares Company.
It remains to be seen whether established traders in the space will pick the ETN over a direct exchange traded method, although considering that as of August, there were at least 55 cryptocurrency funds, making the product increasingly more accessible to retail will probably mean that as the price goes higher, institutional interest in catering to momentum chasers will only grow. Just ask Goldman.
