Fidelity Investments, which controls assets of $2.4 trillion, began offering its customers the opportunity to buy exchange traded notes (ETNs) for bitcoins provided by XBT Provider, whose shares are listed on the Swedish NASDAQ, writes Trustnodes.
“Anyone who invests in dollars can now also access these products, whereas previously they were only available to holders of euros and Swedish kroner,” said Ryan Redlock, CEO of CoinShares Holdings Ltd, the parent company of XBT Provider.
Now in the listing of the OTC Markets system, which with the help of a network of broker dealers like Fidelity offers about 10,000 securities, there will also be a dollar bitcoin-ETN under the code CXBTF.
This means that Americans with an investment account can now access the bitcoin. And although the stock notes are, in essence, debt instruments, in this case they will work approximately on the same principle as ETF.
“Bitcoins are bought for money received through the sale of certificates, which ensure that these certificates are hedged and structured in such a way as to track the bitcoin rate. The certificates are guaranteed by Global Advisors (Jersey) Limited,” explains XBT Provider.
Thus, XBT Provider buys and stores bitcoins for its customers, and the acquisition of ETN as a result becomes an indirect way of buying them.
At the moment, the company operates assets of $434 million, of which 300 million are located in bitcoin, and about 100 million are in Ethereum.
Judging by the available data, it is still impossible to buy ethereal ETNs for dollars – apparently, the company decided that first the way should be laid by bitcoin. According to XBT Provider, ETN is a security, which entails restrictions for some institutional investors like pension funds.