Did you know that there is a way of buying Bitcoin without actually purchasing the digital coin?
You can now own Bitcoin without facing any regulatory or legal issues if your country restricts it. It’s not the highly anticipated Bitcoin Exchange Traded Fund (ETF) that has been delayed time and time again, but an alternative called Bitcoin Tracker One.
Reported by Bloomberg, Bitcoin Track One is quoted in American Dollars under the ticker CXBTF and surprisingly is on the Nasdaq Stockholm, Swedish exchange.
With this news, Americans in the crypto field are dancing in joy as it gives an opening to the already delayed Bitcoin ETF. It also paves the way for something similar to Bitcoin ETF which means there’s not much to be missed. The Bitcoin ETF is said to be decided on the 21st of September where the U.S Securities and Exchange Commission (SEC) will take a final decision.
What is a Bitcoin ETF?
An ETF is a fund that owns underlying assets which include shares of stock, bonds, gold or in this case Bitcoin and divides the ownership of these assets into shares. It allows retailers the opportunity to buy Bitcoin directly through the stock market, hence leading to no ownership of Bitcoin. Thus, challenges such as managing Bitcoin wallets, buying Bitcoin and keeping private keys safe are technically solved.
Why Bitcoin Tracker One is important
It is similar to buying an American depositary receipt for traders, where in this case they will witness a foreign listed asset in American Dollars. Therefore it comes under the category of F shares, which states that it will be executed in American Dollars but settled, cleared and held in custody in the home market of Stockholm, Sweden.
The correct classification of Bitcoin Tracker One is ETN (Exchange Traded Notes), which are defined as debt instruments backed by issuers such as a bank. Bitcoin Tracker One’s notes are issued by XBT Provider AB, a subsidiary of U.K based Coinshares Holdings.
Bitcoin Tracker One slumped to 51% this year, thanks to the currency bear markets within cryptocurrency.
With such availabilities already open and functioning, a Bitcoin ETF will most likely be in sooner than you think. Thus it will help Bitcoin become part of the main portfolio of an investor, with a more likely increase in adoption of cryptocurrencies.