The EU's Biggest ETF Firm Expands Into Crypto Products

[Hydrogen]

Europe's largest trader of exchange-traded funds (ETFs) is now entering the crypto world.

Amsterdam-based speed trader Flow Traders NV co-CEO Dennis Dijkstra told Bloomberg Thursday that his firm was expanding its trading products to exchange-traded notes (ETNs) based on bitcoin and ether.

XBT Provider, a Stockholm-based firm that offers ETFs based on bitcoin and ether, confirmed that Flow Traders NV has "dramatically increased" its securities trading over the last few months.

According to Bloomberg, unlike the major U.S. trading firms currently offering cryptocurrency futures, Flow Traders is the first one to "disclose it's buying and selling crypto notes listed on regulated stock exchanges."

In the interview, Dijkstra said:

"People underestimate crypto. It's big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested -- we know they are because we get requests."

While the Dutch company is moving forward in crypto trading, the country's regulators are wary of the move.

Nienke Torensma, a spokeswoman for the Dutch Authority for the Financial Markets (AFM), said in a statement that "We discourage activities in cryptos both by consumers and professional license holders."

"By virtue of its newness and the anonymity it potentially offers, it is very prone to abuse. Given its inability to serve the promised purpose as a currency, we don't regard it to be an asset class," she continued.

CoinDesk reported in March that the country's finance minister, Wopke Hoekstra, issued a letter to Parliament to urge for "an international approach" to regulate cryptocurrency.

https://www.coindesk.com/the-eus-biggest-etf-firm-expands-into-crypto-products/

I think the net effect of these announcements mean: european investment firms are offering bitcoin and ether ETFs(see: bolded portion of article).

While US markets and the SEC struggled to approve a bitcoin ETF in 2017, europe has gone ahead and done it in 2018. Once again US regulation fails miserably. Europe has approved bitcoin and crypto ETFs. While the united states probably will not approve either in the next 10 years.

This is getting a bit sickening for me being an american and seeing exchanges like bitmex outright ban US residents from trading on leverage. Its almost as if a quiet war is being waged against america and the US economy. Crypto, business and financial opportunities around the world like bitcoin ETFs are being denied to americans. While europeans and foreigners receive much more privilege in terms of support via regulation.

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[Nerman]

Europe's largest trader of exchange-traded funds (ETFs) is now entering the crypto world.

Amsterdam-based speed trader Flow Traders NV co-CEO Dennis Dijkstra told Bloomberg Thursday that his firm was expanding its trading products to exchange-traded notes (ETNs) based on bitcoin and ether.

XBT Provider, a Stockholm-based firm that offers ETFs based on bitcoin and ether, confirmed that Flow Traders NV has "dramatically increased" its securities trading over the last few months.

According to Bloomberg, unlike the major U.S. trading firms currently offering cryptocurrency futures, Flow Traders is the first one to "disclose it's buying and selling crypto notes listed on regulated stock exchanges."

In the interview, Dijkstra said:

"People underestimate crypto. It's big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested -- we know they are because we get requests."

While the Dutch company is moving forward in crypto trading, the country's regulators are wary of the move.

Nienke Torensma, a spokeswoman for the Dutch Authority for the Financial Markets (AFM), said in a statement that "We discourage activities in cryptos both by consumers and professional license holders."

"By virtue of its newness and the anonymity it potentially offers, it is very prone to abuse. Given its inability to serve the promised purpose as a currency, we don't regard it to be an asset class," she continued.

CoinDesk reported in March that the country's finance minister, Wopke Hoekstra, issued a letter to Parliament to urge for "an international approach" to regulate cryptocurrency.

https://www.coindesk.com/the-eus-biggest-etf-firm-expands-into-crypto-products/

I think the net effect of these announcements mean: european investment firms are offering bitcoin and ether ETFs(see: bolded portion of article).

While US markets and the SEC struggled to approve a bitcoin ETF in 2017, europe has gone ahead and done it in 2018. Once again US regulation fails miserably. Europe has approved bitcoin and crypto ETFs. While the united states probably will not approve either in the next 10 years.

This is getting a bit sickening for me being an american and seeing exchanges like bitmex outright ban US residents from trading on leverage. Its almost as if a quiet war is being waged against america and the US economy. Crypto, business and financial opportunities around the world like bitcoin ETFs are being denied to americans. While europeans and foreigners receive much more privilege in terms of support via regulation.

Assuming this is true this is wonderful news (but it can be better if they offer more stable coins). This will be more convenient for people who does not know how to begin investing in Bitcoin. Also since it is offered by an institution it will, people will be more confident in investing on it.
I hope this will be a game changer and more countries will follow.

[davis196]

This is the same old story.Some firm wants to trade cryptos,but the regulatory authorities say "cryptos are dangerous,we discourage crypto trading" which means that they will soon penalize that firm and ban all crypto trading.Hydroden is wrong about the EU taking advantage over the US,when it comes to crypto trading regulations.The situation in the European Union is almost the same.Nobody will let this company trade ETNs in the long term.

[Hydrogen]

Hydroden is wrong about the EU taking advantage over the US,when it comes to crypto trading regulations.The situation in the European Union is almost the same.Nobody will let this company trade ETNs in the long term.

From my perspective, other nations decriminalize drug use while the united states obstinately continues its ineffective and damaging war on drugs. Other nations have access to the best gambling platforms and websites while the united states bans these things. In many US states even fantasy sports sites like fanduel and draftkings are banned and illegal. Other nations have legalized prostitution, while the USA continues to punish and crackdown on adult entertainers and small business owners in the adult industry. Other nations have affordable healthcare--think that's available in the USA? Nope.

This precedent could also apply to crypto. Other countries have access to bitmex and can trade crypto via leverage. All of that is banned and illegal to US residents. Other countries likely have financial platforms which they can utilize to buy fiat. While americans have no choice but to use shady coinbase that is being sued and has two lawsuits filed against it, as other exchanges and platform which sell btc for fiat could be banned for US residents.

Given the above, it makes perfect sense that europeans will have access to bitcoin ETFs while americans are denied this basic financial functionality. As americans are already being denied many basic things which foreigners enjoy ranging from legalized marijuana to gay marriage and simply being able to buy bitcoin without using a corrupt and shady service like coinbase.

Anyways like I said earlier, it truly does look as if a secret and silent war is being waged against americans and the US economy where anything that could help the US economy to grow is being banned or made illegal by state regulation. You might not think that european ETF will be allowed while americans are denied ETF services of their own, but that is exactly what could happen.

[audaciousbeing]

I think the net effect of these announcements mean: european investment firms are offering bitcoin and ether ETFs(see: bolded portion of article).

While US markets and the SEC struggled to approve a bitcoin ETF in 2017, europe has gone ahead and done it in 2018. Once again US regulation fails miserably. Europe has approved bitcoin and crypto ETFs. While the united states probably will not approve either in the next 10 years.

This is getting a bit sickening for me being an american and seeing exchanges like bitmex outright ban US residents from trading on leverage. Its almost as if a quiet war is being waged against america and the US economy. Crypto, business and financial opportunities around the world like bitcoin ETFs are being denied to americans. While europeans and foreigners receive much more privilege in terms of support via regulation.

I think every country should be allowed to operate in its own pace because the political, social and economic environment of the countries differs from one and other which makes comparing them difficult. The united States would have its own reason for not going forward as much as we want then to do and I think its largely due to their influence in world economy. They would want to first get a grasp or some form of control on the blockchain (if possible though) before rolling out their own regulations and the moment they do that a whole lot of other countries are following suit.

I don't think its an outright war against US economy rather its fear of the US might. Today you see a lot of ICOs at the planning stage already disenfranchising US citizens not because they know the law that stops then, but rather they want to avoid "trouble" at all cost as they know wherever they are, they can be reached.

[The Sceptical Chymist]

As americans are already being denied many basic things which foreigners enjoy ranging from legalized marijuana to gay marriage and simply being able to buy bitcoin without using a corrupt and shady service like coinbase.

I'd be hard-pressed to argue that things aren't as dismal as you describe.  But I'd also say that it's not surprising to me that the US government is over-regulating this in the wake of the 2009 financial crisis.  That kind of proved that leverage and derivatives can be extremely dangerous, as can the boneheads who use them with no view to the consequences.  I'm not saying the government's stance on crypto ETFs is correct, just that it's a natural response.  Then again, I'm not sure a bitcoin ETF is in the same category as mortgage derivatives.  The consequence of things going wrong with the former isn't likely to put people out of work, which is what we saw happen in 2009.

I'd also say that a government that prints money like there's no tomorrow might not have the best judgement about these issues in general.  Anyway, we'll see what the outcome in Europe is.