Nasdaq Stockholm has announced that 21Shares has listed its first two bodily backed exchange-traded notes (ETN) on the Swedish buying and selling platform.
The 2 devices listed, with Bitcoin (BTC) and Ether (ETH) as underlying belongings, signify a brand new phase for ETNs — a kind of unsecured debt safety that tracks an underlying index of equities and trades on a serious alternate.
In line with the announcement, the brand new ETNs will present traders entry to funding alternatives in cryptocurrencies comparable to Bitcoin and Ether.
Helena Wedin, European head of exchange-traded merchandise at Nasdaq, mentioned that exchange-traded notes enable one to put money into non-traditional belongings whereas sustaining the transparency of a regulated market. She added, “We’re completely happy to launch this new phase at Nasdaq Stockholm with 21Shares as the primary issuer.”
In line with the press launch, most conventional banks and brokers enable traders to commerce all ETNs listed on Nasdaq Stockholm. It is a first that opens up new prospects to traders all in favour of investing in cryptocurrencies however who’re uncomfortable doing so on unregulated exchanges.
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The cryptocurrency market has skilled a steep rise in valuation all through the earlier yr. Regardless of some recent price dips, curiosity in cryptocurrencies continues to be excessive.
One purpose for this sustained curiosity could also be the potential of increased institutional investment available in the market. As institutional funding in cryptocurrencies will increase, we’ll doubtless see extra merchandise comparable to ETNs being listed on regulated exchanges. As reported by Cointelegraph in September, VanEck introduced Solana (SOL) and Polkadot (DOT) ETNs on Deutsche Boerse’s Xetra.