These Exchange Traded Notes (ETN) are physically backed.
On Tuesday, Nasdaq Stockholm announced on GlobeNewswire the listing of two physically-backed Exchange Traded Notes (ETN) of Bitcoin and Ethereum as underlying assets. ETNs are similar to Exchange Traded Funds (ETF).
ETNs are like bonds; they are unsecured and can be held till maturity or bought or sold at any time like stocks. If the underwriter defaults the payment, the default risk is on the investor.
The two ETNs have been issued by 21Shares, a Switzerland based company that specialized in digital assets based Exchange Traded Products (ETP).
“We are excited to become the first issuer of physically-backed crypto ETNs for Nasdaq Stockholm, one of the most tech-forward global exchanges. Our partnership is a strong endorsement of 21Shares’ mission to make cryptos more accessible in a simple and regulated manner.”Hany Rashwan, CEO of 21Shares
21Shares claims to manage USD 2.9 billion in 20 European crypto ETPs and 82 listings.
The listing could have also provided an upward thrust to the price of Bitcoin and Ethereum as both had green candles at the time of writing.
Currently, Bitcoin is trading at 50750 USDT and Ethereum is trading at 4365 USDT on Binance.
ETPs provide an avenue to invest in alternative financial instruments as investors do not directly participate in the investment. That’s why regulators are willing to approve ETPs which invest in crypto assets.
In the US, the regulators are wary of the spot ETPs; thereby, they only allow derivatives ETPs.
Digital assets are gradually catching up to the mainstream and even capturing the market in the traditional financial space.
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