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Topic: An ETN (Exchange Traded Note) just bypassed the SEC approval process for ETFs!.. - page 2. (Read 307 times)

joniboini
legendary
Activity: 2170
Merit: 1789
Re: An ETN (Exchange Traded Note) just bypassed the SEC approval process for ETFs!..
August 16, 2018, 04:21:17 AM
#2
Quote
It’s an exchange-traded note, and starting Wednesday, investors can buy it more easily even though it’s technically listed and regulated in Sweden. The product, called Bitcoin Tracker One, is now quoted in U.S. dollars under the ticker CXBTF, helping brokerages offer it to American investors. It started trading on the Nasdaq Stockholm exchange in 2015.

It seems the product is not new, and this news doesn't bring any hype IMHO. Seems like ETFs approval/disapproval is still the main factor for people to decide whether they'll join the crypto party or not (and regret later on).
Blackforce
copper member
Activity: 53
Merit: 4
Re: An ETN (Exchange Traded Note) just bypassed the SEC approval process for ETFs!..
August 16, 2018, 04:00:08 AM
#1
An ETN (Exchange Traded Note) just bypassed the SEC approval process for ETFs! Americans can now buy spot bitcoin with their brokerage account.


> Here is an ELI5 version of the below article.
If you want to buy Bitcoin without actually buying Bitcoin, you now have another way to own it. Unlike exchange-traded funds, ETNs are debt instruments that are backed by their issuers -- often a bank -- rather than a pool of assets. An ETN doesn't buy and sell assets within the funds like an ETF.

The issuing company (XBT Provider AB, a subsidiary of U.K.-based CoinShares Holdings) holds the underlying asset. In one way XBT Provider can be seen as a wallet service. For e.g. Whenever somebody buys for $100 fiat, the company buys Bitcoin and put them into storage (primarily, a cold storage). You cannot transact with your Bitcoins, but they are kept in storage as long as you do not sell your ETN-certificates.

The risk is always there when using middlemen that the company could get hacked or the coins stolen by employees. The benefit is a super easy way to buy into Bitcoin with fiat, from your normal financial account and without extra registration or approvals. IMHO a ETN is very similar to an ETF when it comes to user friendliness.

Credit:
https://t.me/cointified

https://t.me/whatsoncrypto

https://www.msn.com/en-us/finance/companies/lovelorn-us-bitcoin-etf-fans-may-find-satisfaction-in-sweden/ar-BBLY95t
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