The long-anticipated bitcoin ETF has yet to materialize, but American
investors seeking to gain exposure to the flagship cryptocurrency
through their standard brokerage accounts now have a consolation prize.
Bloomberg reports that Bitcoin Tracker One,
an exchange-traded note (ETN) that has been listed on Nasdaq Stockholm
since 2015, can now be traded in U.S. brokerage accounts under ticker
symbol CXBTF.
“Everyone that’s investing in dollars can now get exposure to these
products, whereas before, they were only available in euros or Swedish
krona,” said Ryan Radloff, CEO of CoinShares Holdings — the parent of the company that offers the bitcoin ETN — in
an interview with Bloomberg. “Given the current climate on the
regulatory front in the U.S., this is a big win for Bitcoin.”
Technically, Bitcoin Tracker One will be publicly-quoted as a foreign
debt instrument on a U.S.-based over-the-counter (OTC) market, the same
type of platform that lists Grayscale Investments’ popular Bitcoin Investment Trust (OTC: GBTC).
Like GBTC, CXBTF holds bitcoin on behalf of shareholders, allowing
them to invest in bitcoin while offloading the custodial risk in
exchange for an annual management fee.
However, Bitcoin Tracker One could prove to be a more attractive
option. That’s because GBTC and its cousin, the Ethereum Classic
Investment Trust (OTC: ETCG) regularly trade at a significant premium to
their net asset value (NAV). CXBTF, on the other hand, is listed on an
exchange, albeit not in the U.S., providing it with more liquidity and
helping it to trade at less of a premium.
“I do see this as a competitive product,” added Radloff. “Our
products historically have not traded at a premium and are liquid.”
