A Denmark-based multi-asset and trading institution, Saxo Bank, recently stated they are allowing clients to gain exposure to bitcoin. The bank just added exchange-traded notes for bitcoin.
Saxo bank mentioned that fascination with bitcoin has dramatically increased in 2017. This is primarily because the Asian market, especially China and Japan, has opened up. This means these countries have generated a lot of bitcoin trades.
This also implies investors and speculators want a new way to trade bitcoin without having to directly work with the asset. The fact bitcoin is also seeing higher usage in places like Latin America, Greece, Africa, and elsewhere, may also be spurring various markets into action.
Saxo Makes a Move into Bitcoin ETNs
As a result of all the market activity and bitcoin excitement, Saxo decided to offer exchange traded notes. This fund will provide investors with indirect exposure to bitcoin’s price. A Financefeeds article elaborated:
In response to this growing interest, Saxo has added two new Exchange Traded Notes (ETNs) to its offering. Saxo clients can now get exposure to Bitcoin through these two new ETNs designed to track the movement of Bitcoin against the US Dollar (BTC/USD).
One note is referred to as “Bitcoin Tracker One” and is traded in Swedish Krona, and the other note is the “Bitcoin Tracker Euro.” It is traded in Euro. The site details both notes are issued by XBT provider AB, and traded on Nasdaq OMX.
Popularity of Bitcoin is Increasing Demand for ETN’s
The Finanicalfeeds website also suggested that growing demand for bitcoin speculation has caused more trading companies to get involved in the space. The site said, “Lately, a growing number of online trading companies have sought to satisfy the demand for virtual currency products. In July this year, Swissquote, the leading online bank in Switzerland, launched Bitcoin trading on its trading platform.”
The Swissquote platform work similarly to foreign exchange markets. Users simply place their Euro and US dollar into an account and tie it up with Bitcoin. However, investors will not have access to leverage when working with bitcoin notes. Bitcoin.com covered Swissquotes entrance into the crypto ecosystem.
Switzerland’s leading provider of online financial and trading services, Swissquote Bank, has partnered with bitcoin exchange Bitstamp to offer bitcoin trading on its platform, available to 200,000+ private and institutional investors.
Lastly, the Financialfeeds site mentioned that a trading market called IG group also expanded into cryptocurrencies. They focus on Ether trading. Their clients can take a position on the future gains or declines of ether.
Do you think that more investment banks will start to offer exchange traded notes? Is this a good idea? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
Show the world how cutting-edge you are with a bitcoin T-shirt, hoodie, bag, key-ring, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, a payment system that makes people say “wow”!