U.S. Investors Can Now Trade Bitcoin ETN On Swedish Exchange

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U.S. Investors Can Now Trade Bitcoin ETN On Swedish Exchange

U.S. investors interested in investing in related products now have the opportunity to trade in bitcoin ETNs listed on Nasdaq Sweden while regulatory authorities in the nation are still deciding what to do regarding bitcoin ETFs. (Also see: Americans Now Have Access To A Swedish Bitcoin ETN.)

The Bitcoin Tracker One is now accessible to American investors as an American Depository Receipt after being listed on the Swedish market (ADR).(See also: American Depository Receipt Introduction.) It debuted on May 18, 2015, and it has a 1:1 leverage ratio. Leveraged ETNs follow the price of a commodity, a futures contract, or an underlying index. The ETN keeps bitcoin in custody with certificates backed by Global Advisors (Jersey) Limited and has received approval from the Swedish FSA.

Before, these products were exclusively offered in euros or Swedish krona, but now anybody investing in dollars may access them. This is a significant victory for bitcoin given the present regulatory environment in the United States, according to Ryan Radloff, CEO of CoinShares Company. (Consider also traditional stock and forex brokers that provide cryptocurrency trading.)

Regulatory Bottlenecks for Bitcoin ETFs

For bitcoin ETFs, the going has been difficult. For the last several years, applications for bitcoin ETFs have been turned down by the SEC. The government expressed its apprehensions about bitcoin ETFs throughout the first half of this year. These worries cover a wide spectrum and vary from bitcoin custody issues to a lack of regulation at cryptocurrency exchanges. (Read more about why the SEC is wary about bitcoin ETFs here.)

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In the meanwhile, investors have consistently embraced bitcoin in the mainstream. Despite the novelty of the product and regulatory uncertainties, institutional investors have started to like it. For instance, the financial giant Goldman Sachs has allegedly established a bitcoin trading desk and made prominent employees in the cryptocurrency industry.

The only cryptocurrency-related ETF presently trading on the OTC markets is Bitcoin Investment Trust (GBTC). As of this writing, the ETF that follows the price of bitcoin has had an erratic trajectory and is down 65% for the year. Similar to Bitcoin Tracker One, it has decreased by 50.84% as of this writing.

This article does not constitute a recommendation by Investopedia or the author to invest in cryptocurrencies or other Initial Coin Offerings (“ICOs”). Investing in cryptocurrencies and other ICOs is very hazardous and speculative. Before making any financial choices, it is always advisable to get the advice of a knowledgeable specialist since every person’s circumstance is different. No guarantees or claims are made by Investopedia on the timeliness or accuracy of the information provided here.

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