A bitcoin exchange traded fund still does not exist in the U.S., but when such a product or products do become available, evidence suggests those funds will quickly gather assets.
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.
“According to Eric Balchunas, a senior ETF Analyst for Bloomberg, Sweden’s Bitcoin exchange-traded fund (ETN) is bigger than around 80 percent of US exchange-traded funds (ETFs),” reports CoinTelegraph.com.
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.