Bringing Bitcoin to major financial exchanges has proven to be quite fruitful for the adoption of virtual currency. Various Bitcoin ETF’s are in the process of launching on Nasdaq, but the European counterpart — called Nasdaq Nordic — might beat them to the punch. If XBT Provider has a say in the matter, they will launch Bitcoin Tracker EUR on Nasdaq Nordic in two weeks from now.
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XBT Provider: Bringing Bitcoin to Nasdaq Nordic
The name XBT Provider might ring a bell for many European Bitcoin enthusiasts, as this Stockholm-based company wants to facilitate access to Bitcoin markets for regular traders and investors. Doing so will allow anyone in the world to invest easily in Bitcoin, and remove any boundaries associated with the process otherwise.
What makes XBT Provider such an interesting company is the fact they are a part of KnC Group, the parent company of KnC Miner AB, one of the largest Bitcoin mining manufacturers in the world. This gives XBT Provider a slightly more legitimate status, even though they are trying to tackle an entirely different market.
Earlier in 2015, XBT Provider made its way to Nasdaq Nordic when it launched Bitcoin Tracker One, a product mirroring the return of USD per Bitcoin. Simply put, Bitcoin Tracker One is an exchange-traded note designed to track the movement of the underlying USD/Bitcoin asset after deducting fees.
The reason for choosing an asset tied to the USD on Nasdaq Nordic is simple to explain, as the USD/BTC market offers the most liquidity in a widely available manner. Nearly every Bitcoin exchange in the world lists a USD/BTC trading market, and the virtual currency’s value is usually referred to in US Dollar.
XBT Provider is planning to launch a secondary Bitcoin tracker on Nasdaq Nordic, which will be listed on October 5th. This new asset will be called “Bitcoin Tracker EUR,” offering a similar value for money as Bitcoin Tracker One, but denominated in Euro, rather than US Dollar. This new tracker is part of XBT Provider’s expansion plan, as they want to increase their European customer base.
XBT Provider CEO Alexander Marsh stated the following:
“We are proud to offer a Euro-denominated instrument to meet demand from investors worldwide. Bitcoin Tracker One has during periods been among the top 3 most traded ETNs on Nasdaq Nordic since launch. With Bitcoin Tracker EUR we hope to further eliminate the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe will be the future of money”
Bitcoin Liquidity More Important Than Ever Before
One thing to take away from both Bitcoin trackers offered by XBT Provider is how liquidity across major exchanges is becoming more important than ever before. Most of the daily Bitcoin trading volume takes place on Chinese exchanges, where Bitcoin is actively traded against the Chinese Yuan. Some industry experts go as far saying that Bitcoin exchanging has become quite centralized as of late, which is a worrying trend, to say the least.
Bitcoin Tracker One has proven to be a success formula for XBT Provider, and the addition of Bitcoin Tracker EUR will bring even more mainstream attention to virtual currency. However, if liquidity across major exchanges proves insufficient, regular traders might be put off by the idea of investing in Bitcoin altogether. XBT Provider is confident this will not be an issue, as Board Member Staffan Helgesson stated:
“Bitcoin Tracker One was the world’s first financial instrument that provided consumers and institutions the possibility to invest in bitcoins without holding coins themselves. It proved that XBT Provider could launch an instrument with high liquidity that very accurately tracked the price of bitcoin. Bitcoin Tracker EUR will give the investors all the benefits of Bitcoin Tracker One, and also offer a currency they are used to invest in.”
What are your thoughts on Bitcoin Tracker One and Bitcoin Tracker EUR? Are you worried about Bitcoin liquidity drying up? Let us know in the comments below!
Source: Press Release via Email
Images courtesy of XBT Provider, Nasdaq Nordic, Shutterstock