Bitcoin ETN fund to be launched in Sweden in October

     On September 21, with the approval of the Swedish Financial Supervisory Authority, XBT Provider AB announced that it would issue a new ETN-Bitcoin Tracker EUR, which will be a Bitcoin fund denominated in euros. This ETN will be listed and traded on the Nasdaq Nordic Stock Exchange on October 5. According to Alexander Marsh, CEO of XBT Provider AB, the fund can provide a financial product denominated in euros to meet the needs of global investors. The previously issued ETN-Bitcoin Tracker one once ranked among the top three in terms of trading volume. The newly issued Bitcoin Tracker EUR has lower investment fees, and investors can more easily access the returns of underlying assets. Without directly holding Bitcoin, they can directly invest in Bitcoin with euros, providing high-speed market liquidity while accurately tracking the price of Bitcoin.

Huobi's analysis team believes that after ARK Investment Management LLC (ARK) announced the launch of an ETF fund, more and more financial institutions are focusing on the Bitcoin industry, and the integration of traditional financial trading tools and Bitcoin is becoming increasingly close.

What is ETN?

Unlike the ETF funds issued by ARK, ETN (Exchange-Traded Note) is an exchange bond, which is an unsecured debt. The issuer promises to pay the holder a certain amount of money when the bond matures. The payment amount is linked to the performance of specific asset categories and indices, and the principal is not guaranteed.

Trading Methods

Investors can buy and sell ETNs directly on the stock exchange, or short ETNs. However, the two are essentially different. ETF funds correspond to assets, and holders will be paid according to the net asset value when liquidated. ETN bonds correspond to only an unsecured commitment from the issuer, and the security of its repayment depends entirely on the credit of the issuer.

Transaction Differences

Compared with ETF, the advantage of ETN is that there is no tracking error, and it can accurately reflect the rise and fall of the tracking index. Another advantage is the tax advantage. ETN only pays a lump sum upon maturity, so generally no dividend income needs to be paid.