Bitcoin futures debuted on the Chicago Board Options Exchange (CBOE) Sunday, a move that many market observers expect will, at the very least, move forward the conversation regarding US-listed bitcoin exchange traded products, including ETFs.
Bitcoin was trading at more than $16,000 on Monday morning,
“In an interview, Edward Tilly, Cboe’s chief executive officer, said the exchange may use information gleaned from futures trading to make a case to the Securities and Exchange Commission (SEC) to allow bitcoin-linked ETFs and exchange-traded notes (ETNs),” reports CoinDesk.
Bitcoin exchange traded notes (ETNs) trading in Stockholm are finding success. XBT Provider, a unit of CoinShares, offers bitcoin and ethereum-based exchange traded notes denominated in euros and Swedish krona that trade in Stockholm. Those products are fairly new and proving successful in terms of adding assets.
At the end of November, the Stockholm-listed bitcoin ETN had $700 million in assets under management, a massive number for an exchange traded product trading in Sweden.
An ETN is a bond security. A issuing financial institution promises to pay ETN investors a return on a benchmark index before the ETN matures. Additionally, some ETNs provide current distributions to investors. Since ETNs are a type of debt security, investors will have to watch out for the credit worthiness of the issuing bank.