Bitcoin Forum

Read the full article (https://diginomics.com/bitcoin-begins-trading-on-nasdaq-stockholm/).

The world’s first bitcoin security began trading live on the NASDAQ Stockholm exchange Monday. The Bitcoin Tracker One is an Exchange Traded Note (ETN) which allows traders to invest in bitcoin and acquire returns in USD.

Sweden’s financial authority, Finansinspektionen, granted the launch of the bitcoin ETN last month to Stockholm-based firm XBT Provider.

Alexander Marsh, CEO of XBT Provider told Bloomberg at the time:

“We are proud to offer the world’s first ‘Bitcoin tracker’ to be traded on a regulated exchange. By enabling this easy and secure way to invest in Bitcoin we hope to have eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe to be the future of money.”

oh finally something that should shut up the mouth of countless trolls out there, i expect something like this to trigger the next raise, and change most bearish in bullish ready to bring bitcoin to the next level, the level it deserve

anyway it's obvious that only the big, with their big investments can place bitcoin on the pedestal

This is great news!

Does anyone know how many botcoins are being traded over here as ETN ?

What's happen to the Winklevoss' ETF? Other ETNs are beginning to sprout on exchanges, but there's no news on the most trumped up ETF.

Bring it to the next level of speculating? People have been speculating on Bitcoin from the beginning. Now Bitcoin is a more respected pump n dump where they can "acquire returns in USD".

It depends on how many people are going to be trading it.

Finally! it will be a one great leap on Bitcoin
by the way, if i may also add, bitcoin is also exchanged in etoro
its like an online stock market

well speculating will be always there no matter the situation around it, but for next level i was referring at building a new solid floor, for the price

the price has the same value as the adoption, it need to raise

This is definitely good news.
Let's hope it doesn't take long for other countries to follow example.

Yeah, I guess I can see this as good news for short term speculators that want a quick buck. It could cause problems for price stability that effects adoption. The BitPay type businesses can continue to promise a set price for business exchanges but getting them to hold on to the coins will be more difficult if the price is fluxing $250 a day. 

that kind of great news is a great sign of bright future of bitcoin, that is really awesome to get bitcoin on Nasdaq that is just beginning of new era to go to the mainstream and get notified from big investors to take it as serious investment in bright future.

knc is selling their coins

Poor guys. Coinbase beat them to the launch of Gemini, and now they've been beaten to the launch of their ETF. You snooze you lose.

It's a different beast, though similar in spirit. The ETF actually holds the asset. The ETN is just a credit note whose value depends on the entity that issued it.

I know where I'd rather be sticking my money.

Are you sure ? So, is it different from an ETF ?

Yes. An ETN is a credit note, not something backed by the actual commodity like the ETF would be (theoretically.)

With an ETF you're buying actual bitcoins in a wrapper. With the ETN all you're buying is a promise from KNCminer. If KNCminer fails then bang goes the ETN too.

I guess another opportunity for the shorters to gain some more quick money from trading. Btw, what happened to the Winklevoss twins? Haven't heard of them again and the ETF.

Oops... then ETN is dangerous. KNC already failed in their cloud mining contract (though some people claim that the failure was according to their ToS).

Does anyone know how many bitcoins will be traded by the proposed Winklevoss ETF and how Winklevoss will make profit out of it ?

Doesnt knc have to hold bitcoin for the notes?  What if btc triples in value and people cash out?  How would knc pay?  I doubt they can just issue notes on nasdaq without backing.

They attracted some serious investment and I assume nasdaq wouldn't be allowing total idiots into their market.

The Winklevii have 100,000 or so coins right now. If they sell more shares then they'll have to obtain more from elsewhere.

If they dont need to back their notes with actual bitcoins then there just selling paper thats the same price of bitcoin.   Or they could issue billions of notes and essentially increase the number of coins that are even available.  What am i missing?

Unfortunately all the details are on their prospectus but it's only in Swedish.

I do remember reading somewhere that every note would be backed by coins so maybe it's not quite an ETN.

"XBT Provider AB will hedge all sales of the bitcoin traded note by buying an equal value in the bitcoin market."

http://www.coindesk.com/swedens-nasdaq-exchange-approves-bitcoin-based-etn/

From wikipedia -

"When an investor buys an ETN, the underwriting bank promises to pay the amount reflected in the index, minus fees upon maturity. Thus ETN has an additional risk compared to an ETF; if the credit of the underwriting bank becomes suspect, the investment might lose value, the same way a senior debt would."

"ETNs don't actually own anything they are tracking."

If true that seems like a bad bad idea with bitcoin.  There is a finite number.  Supply and demand goes out the window and price will not go up if there not actually buying any supply.

I think they were bright enough to realise that hence the commitment to buy equal amounts of coins per note. I dunno whether that's totally voluntary or whether they have to inform the market if that changes.

We need a Swedish speaker to have a read of the prospectus and clear it up.