Exchange-traded notes are a traditional financial product found in fiat markets. They can now be easily used by investors to gain exposure to the price fluctuations of Ether.
Investors seeking to gain exposure to the price movements of Ether have a new instrument. CoinShares and its subsidiary XBT Provider have announced the launch of two Ether-based exchange-traded notes (ETNs) that are currently available on the Nasdaq Stockholm exchange. XBT Provider previously made a name for itself by being the world’s first issuer of bitcoin ETNs.
Cryptocurrency-backed financial products have quietly and gradually been making their debut. If fiat markets are any indication of the heights that cryptocurrencies could reach when buttressed by these kinds of products, we may be witnessing a significant development in crypto-history. The recent additions of ETNs COINETH and COINETHE to Nasdaq Stockholm’s offerings are a continuation of this trend.
ETNs, like their cousins, exchange-traded funds (ETFs), are financial products based on the value of underlying assets. ETNs and ETFs are similar but different. Generally speaking, an ETN is attached to a single underlying asset whereas an ETF is linked to the collective value of a group of underlying assets.
Ryan Radloff, co-principal at CoinShares, stated:
“Today is a historical moment for Ethereum and Ether as an asset; and for the future of crypto-assets. It was a little over two years ago that the bitcoin ETNs began trading – offering investors exposure to bitcoin via an established exchange for the first time. Today, we are able to bring Ether to the market and mark another major first.”
Both ETNs will be denominated in Swedish kronor as well as euros. Per the press release, “The ether ETNs are structured to track the price of ether, as determined by an index rate comprising the average of the 3 most liquid of a select group of exchanges, daily. The ETNs are traded during normal market hours.”
Helena Wedin, head of ETP Services Europe at Nasdaq remarked, “Trading Ether on Nasdaq Stockholm provides investors with the protection provided by a regulated infrastructure, well-known marketplace and accessibility through their ordinary brokers.”