Sweden Launches Fully-Regulated Bitcoin ETN for US Investors

Launched Aug. 15, U.S. investors are now able to invest in a fully-regulated Bitcoin ETN. XBT Provider AB has released an exchange-traded note, called Bitcoin Tracker One, to U.S. investors, reports Bloomberg.

XBT Provider AB is a majority-owned subsidiary of CoinShares Holdings Ltd. Initially launched in 2015, Bitcoin Tracker One is listed on the Nasdaq Stockholm Exchange and was previously only available for trading in euros and the Swedish krona.

The Bitcoin ETN is now quoted in U.S. dollars, making it available to American investors.

Similar to buying an American depositary receipt, traders can purchase Bitcoin Tracker One as a foreign-listed asset available for exchange in U.S. dollars.

"Everyone that's investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona. Given the current climate on the regulatory front in the U.S., this is a big win for Bitcoin."

U.S. investors have long awaited Bitcoin exchange-traded funds to gain regulatory approval and reach markets, as they are considered a potential catalyst for incoming institutional capital to enter the sector.

Recently, Cboe Global Markets' Bitcoin ETF application decision was delayed until late September of this year.

Weeks earlier, the U.S. Securities and Exchange Commission denied Winklevoss-owned Gemini exchange's Bitcoin ETF application for the second time.

Grayscale Investments offers a similar Bitcoin ETN product, called the Bitcoin Investment Trust; however, it trades at a significantly higher premium to the underlying asset, giving Bitcoin Tracker One a clear advantage.

Bitcoin Tracker One has fallen 51 percent this year due to a persisting multi-month downtrend in the overall cryptocurrency market, according to Bloomberg.