“The issue with bitcoin is the price is driven 100 percent by market psychology,” said Nick Colas, co-founder of the market analysis firm DataTrek Research. “It is still a new technology and in the early days of adoption, so there isn’t a lot aside from public confidence to underpin its value.”
Bitcoin ETN Debuts in the US
A Bitcoin ETN is now available for investors who have been reticent to dive into cryptocurrencies can now invest in an exchange-traded note with the leading digital currency as its underlying asset. Per a Bloomberg report, American investors now have access to Bitcoin Tracker One and BTC ETN.
The investment product will be available under the “CXBTF” ticker symbol and will be quoted in U.S. dollars. The clearing and settlement of the trade will be available in the Krona and Euro since the product is listed and regulated in Sweden. The ETN is issued by XBT Provider, which is a subsidiary of CoinShares.
The news of the ETN arrives at a critical juncture for cryptocurrencies as the US Securities and Exchange Commission is postponing their decision on a bitcoin ETF filed by investment firm VanEck and blockchain technology company SolidX. Regulatory control by the SEC under an exchange would help reticent investors adopt Bitcoin as a legitimate investment opportunity.
For more information on the cryptocurrency market, visit the Bitcoin category.