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The emergence of products like 21Shares ETNs is a good way to shift the paradigm for more conservative investors who want an extra level of security.
21Shares, one of the biggest issuers of digital currency investment products, has issued the first two Exchange Traded Notes (ETNs) on the Nasdaq Stockholm bourse, extending investors access to the growing world of cryptocurrencies. According to the official announcement, the two instruments listed have the physical Bitcoin (BTC) and Ethereum (ETH), the two largest digital currencies as their underlying assets.
According to the firm, the Bitcoin ETP will trade under the ticker symbol “ABTC” while the Ethereum-based ETP will list under the tracker “AETH.” 21Shares said both products listed on the Nasdaq Stockholm are available to trade through most regular banks and brokers.
“We are excited to become the first issuer of physically-backed crypto ETNs for Nasdaq Stockholm, one of the most tech-forward global exchanges,” said Hany Rashwan, CEO of 21Shares. “Our partnership is a strong endorsement of 21Shares’ mission to make cryptos more accessible in a simple and regulated manner.”
The growth of the digital currency ecosystem has been born out of a strong conviction on the part of both retail and institutional investors who buy cryptocurrencies despite the clamor that the nascent asset class is unregulated. The emergence of products like 21Shares ETNs is a good way to shift the paradigm for more conservative investors who want an extra level of security.
“Exchange Traded Notes provide access to alternative investments while maintaining the transparency of a regulated marketplace, and we are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer,” said Helena Wedin, European Head of Exchange Traded Products at Nasdaq.
The background of 21Shares in the crypto ecosystem is also an added incentive in the proper administration of the ETP products. The company was amongst the pioneers of cryptocurrency index providers with the launch of the first of such products on the SIX Swiss Exchange. The company continues to power its cryptocurrency franchise with cutting-edge research and groundbreaking approaches to product strategy.
The Rise of Exchange Traded Products and Notes
While Europe leads in the emergence of Exchange Traded Notes, several other countries are also beginning to make room for similar products as the quest for alternative crypto products has taken a new momentum in the past year. With Canada and Brazil also known to have crypto-linked Exchange Traded Funds listed on their public bourses, the narrative that the interest in digital currencies is now global is further cemented.
The United States also joined the party when the Securities and Exchange Commission (SEC) approved the Bitcoin Futures ETF sponsored by ProShares to start trading on the New York Stock Exchange back in October. Though a real Bitcoin ETF is still far away from being approved, market stakeholders are more optimistic that the current regulatory body is now more open to innovation bordering on the digital currency ecosystem.
With the quest for crypto regulations now being taken seriously by most regulators around the world, the possibility that these regulated investment products are billed to permeate most public bourses in the near future remains high, a turn that will mean well for the crypto ecosystem.