Friday, May 20, 2022

Nasdaq Stockholm lists exchange-traded Bitcoin and Ether notes

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Nasdaq Stockholm introduced that 21Shares has listed its first two bodily backed Change Traded Notes (ETN) on the Swedish buying and selling platform.

The 2 listed devices with Bitcoin (BTC) and Ether (ETH) as an underlying symbolize a brand new phase for ETNs – a kind of unsecured debt instrument that tracks an underlying inventory index and is traded on a serious alternate.

In keeping with the announcement, the brand new ETNs will give buyers entry to funding alternatives in cryptocurrencies like Bitcoin and Ether.

Helena Wedin, European Head of Change Traded Merchandise at Nasdaq, stated that exchange-traded debt securities make it doable to spend money on non-traditional belongings whereas sustaining the transparency of a regulated market. She added: “We’re happy to introduce this new phase on Nasdaq Stockholm with 21Shares as the primary issuer.”

In keeping with the press launch, most conventional banks and brokers enable buyers to commerce any ETNs listed on Nasdaq Stockholm. This can be a first that opens up new alternatives on unregulated exchanges for buyers desirous about investing in cryptocurrencies however uncomfortable with it.

Associated: ETN vs. ETF: What’s the Investor’s Dream?

The cryptocurrency market has seen a steep spike in valuation over the previous 12 months. Regardless of some current worth declines, curiosity in cryptocurrencies stays excessive.

One purpose for this continued curiosity could also be the opportunity of elevated institutional investments available in the market. As institutional investments in cryptocurrencies improve, extra merchandise like ETNs are more likely to be listed on regulated exchanges. As Cointelegraph reported in September, VanEck launched the ETNs Solana (SOL) and Polkadot (DOT) on Deutsche Börse’s Xetra.