Nasdaq Stockholmannounced that 21Shares has listed its first two physically-backed exchange-traded banknotes (ETN) on the Swedish trading platform.
As underlying assets Bitcoin (BTC) and Ethereum (ETH) The two vehicles listed with represent a new segment for ETNs. The ETN provides a type of unsecured debt security that tracks an underlying stock and trading index on a major exchange.
According to the announcement, the new ETNs will give investors access to investment opportunities in cryptocurrencies such as Bitcoin and Ethereum.
Helena Wedin, head of Europe for listed products on the Nasdaq, said that exchange-traded securities allow investors to invest in non-traditional assets while maintaining the transparency of a regulated market. “We are delighted to launch this new segment on Nasdaq Stockholm with 21Shares as the first issuer,” he said.
According to the press release, most traditional banks and brokers (brokers) allow investors to trade all ETNs listed on Nasdaq Stockholm. This is a prime example that offers new possibilities to investors who are interested in investing in cryptocurrencies but are uncomfortable doing so on unregulated exchanges.
The cryptocurrency market has experienced a steep rise in valuation over the previous year. Despite some recent price drops, interest in cryptocurrencies remains high.
One reason for this continued interest is thought to be increased institutional investment in the market. As institutional investment in cryptocurrencies increases, we will likely continue to see more products such as ETNs listed on regulated exchanges. As reported in September, VanEck also introduced its ETNs Solana (SOL) and Polkadot (DOT) on Deutsche Boerse’s Xetra.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.