Bitcoin Forum

An ETN (Exchange Traded Note) just bypassed the SEC approval process for ETFs! Americans can now buy spot bitcoin with their brokerage account.


> Here is an ELI5 version of the below article.
If you want to buy Bitcoin without actually buying Bitcoin, you now have another way to own it. Unlike exchange-traded funds, ETNs are debt instruments that are backed by their issuers -- often a bank -- rather than a pool of assets. An ETN doesn't buy and sell assets within the funds like an ETF.

The issuing company (XBT Provider AB, a subsidiary of U.K.-based CoinShares Holdings) holds the underlying asset. In one way XBT Provider can be seen as a wallet service. For e.g. Whenever somebody buys for $100 fiat, the company buys Bitcoin and put them into storage (primarily, a cold storage). You cannot transact with your Bitcoins, but they are kept in storage as long as you do not sell your ETN-certificates.

The risk is always there when using middlemen that the company could get hacked or the coins stolen by employees. The benefit is a super easy way to buy into Bitcoin with fiat, from your normal financial account and without extra registration or approvals. IMHO a ETN is very similar to an ETF when it comes to user friendliness.

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https://www.msn.com/en-us/finance/companies/lovelorn-us-bitcoin-etf-fans-may-find-satisfaction-in-sweden/ar-BBLY95t

It seems the product is not new, and this news doesn't bring any hype IMHO. Seems like ETFs approval/disapproval is still the main factor for people to decide whether they'll join the crypto party or not (and regret later on).

ETN is certainly not a new product but it's new for bitcoin market. However, it's just another hollow product because it doesn't settles for actual asset, instead it trades on the prevailing price of an asset. So people will be trading on the bitcoin price without actually holding bitcoins and there is no way for physical delivery. needless to say, it will not bring any impact on the bitcoin market and no fresh funds will be infused there. Zero impact initiative! Seems like regulated entities found another way to play with investor's money in the name of an unregulated asset!

Although ETN is a new idea in the Bitcoin market, it can be expected that will do well for Bitcoin ETF. However, it is hard to tell about its effect on Bitcoin and crypto. If we get more idea about ETN then we can be described about it.

People are still on hold with the whole ETF getting approved or not and they are thinking of making their decisions based on that. This mindset needs to changed immediately before it is too late to mend.

Even though it is not a new product, the people are still highly engrossed in the whole ETF's issue. If it gets approved, maybe it will restore some balance in the market.

It seems to me that ETN is a good trick to hold the SEC. We hope ETN will be approved, unlike an ETF, it can give green days for the market.

ETNs are very different in terms of features that are being offered by a traditional ETF. In ETF the investors can hold the actual asset they are investing in and in terms of ETN their investment will be judged based on the valuation of asset. Though the news is making quite a buzz in the cryptomarket but the nature of ETN will ultimately water it down. But, it does open a door for institutional investments nonetheless.

ETNs getting approved will definitely open the possibilities for ETF getting approved in the future if a someone comes up with foolproof framework for an ETF which is immune to manipulation. Till then, ETNs won't make much difference to the current crypto market as it seems.

To be honest, ETFs are not relevant to crypto market let alone ETNs which don't even have a physical product or asset tied to it. Rather it is being backed by the price of Bitcoin which can't be of much use to the investors if they can't really hold the actual asset which is Bitcoin here.

ETN is positively not another item but rather it's new for the bitcoin showcase. Nonetheless, it's simply one more empty item since it doesn't make due with the genuine resource, rather, it exchanges on the overall cost of a benefit. So individuals will exchange on the bitcoin cost without really holding bitcoins and there is no chance to get for physical conveyance.

It appears the item isn't new, and this news doesn't bring any promotion IMHO. Appears ETFs endorsement/objection is as yet one of the principal factors for individuals to choose whether they'll join the crypto world or not. But it is believed if they don't they will regret later for sure.

ETN was the existing one, I don't think it will be able to impact anything. It won't expedite any effect the bitcoin showcase and no crisp assets will be implanted there. Zero effect activity! Appears as though controlled substances found another approach to play with financial specialist's cash for the sake of an unregulated resource!

ETN is not new to us, it was always great with other things. But I don’t prefer ETN to invest on bitcoin. It doesn’t seem promising as their process seems to me turbid.

ETN is great but it is nothing new. We have seen ETN with other dealings. But I think ETN is not a very good solution to invest on Bitcoin as the whole process seems little bit of opaque

if it will get ETF approve it will be more secure and potential. it is more profitable and popular. people are increasing their investment. it will be provide better service because it is committed to perform better service and ensure profit for investor. its future are good.

you right it will be do something good. if it's ETF approved by SEC it should be a good sign. it will be more secure and potential. people are increasing to interest invest here. it will make more profit. its future are good.

I think this product is not new and this news can’t bring out any hype imho. I think here ETF play a vital role because their decision is depend on it. I believe it will approve very soon.

Although the concept ETN is not a new product, it seems to be new to the Bitcoin market I guess. I have a little idea about how much it relates to Bitcoin ETF. I am not sure whether ETN will affect the market. I want to get more ideas about this.

The ETN concept in the Bitcoin market is really new, I guess, I'm not sure how does ETN it will work or impact on Bitcoin ETF but hopefully there will be something better. We need to know better about this.

I think this is good news. The Bitcoin market is developing and becoming more diverse. I think and ETN will be in demand and eventually will have more influence on the market .

ETN is absolutely not another item but rather it's new for the bitcoin market. In any case, it's simply one more empty item since it doesn't make due with the genuine resource, rather, it trades on the predominant cost of a benefit. So individuals will trade on the bitcoin cost without really holding bitcoins and there is no chance to get for physical conveyance. obviously, it won't expedite any effect the bitcoin market and no crisp assets will be implanted there. Zero effect activity! Appears as though directed elements found another approach to play with speculator's cash for the sake of an unregulated resource!