One of the biggest advancements for Bitcoin in the traditional financial world has been the fact that the world’s first Bitcoin-based security can now be traded on regulated exchanges. And it is exactly this Bitcoin-based security that has been making some headlines in recent times, especially now that it can be traded on Germany’s Tradegate Exchange.
Bitcoin Tracker One – The Exchange Traded Note
In May 2015, major news reached Bitcoin enthusiasts worldwide. Stockholm-based firm XBT Provider – XBT is the “official” abbreviation for Bitcoin – created Bitcoin Tracker One, an Exchange Traded Note (ETN) which can be traded on regular financial exchanges. Traders are able to invest in Bitcoin and access returns of the asset in USD per Bitcoin.
Being able to trade a Bitcoin asset on regulated exchanges – such as Sweden’s Nasdaq – is a major step forward for the legitimacy of this disruptive digital currency. Additionally, the ETN offers a secure way of investing in Bitcoin for traditional investors, without having to go through digital currency exchange verification processes.
Bitcoin has been eyed by many investors from all around the world for quite some time, yet it has always proven rather difficult to properly invest in the digital currency and its underlying blockchain technology. However, now that the ETN can be traded on official financial exchanges, everyone has the ability to invest in the future of money.
When the announcement was made, Swedish financial experts immediately saw the potential of this ETN. Furthermore, they speculated that it would only be a matter of time until this ETN would be tradeable on other exchanges around the world. And it looks like they were right, as the ETN can now be traded on Germany’s Tradegate Exchange.
Tradegate Exchange Adds Bitcoin ETN
At this point, it remains a bit unclear as to why Tradegate Exchange suddenly enabled the trading of the Bitcoin ETN XBT on their platform. Unconfirmed reports indicate that both a growing demand from Tradegate customers, as well as the increase in trading volume on Sweden’s Nasdaq, are the most likely reasons.
What makes the decision more interesting is that this is the second European exchange to list the XBT ETN, yet other parts of the world are not showing any noticeable interest in doing the same. But that situation might be about to change, depending on whether or not Tradegate Exchange will see a similar success to Sweden’s Nasdaq.
At the time of publication, the average bid per ETN was just below the 1200 mark, on the buy side, with a sell price of just below 1250. To put this in fiat currency terms, these values represent a value of 238.6 EUR (buy) and 248.6 EUR (sell), which is on par with the current BTC/EUR exchange rate. Tradegate Exchange has listed 2,000 ETN shares in total.
Images courtesy of Nasdaq Sweden, Tradegate and Shutterstock