Cryptocurrency

New York comes to Switzerland: ETP Bitcoin

On several occasions we have stated as the cryptocurrencies have tried to enter to the stock exchanges of the countries, with various obstacles. The representative specimen of this may be the ETF for Bitcoin. However, currently if a country is causing you problems, you’re going another. In this case, an ETP of Bitcoin has seen light in Switzerland.

What is an ETP?

Before proceeding to the news we believe that it is necessary to explain what is a ETP of Bitcoin in particular, as it is a financial instrument that we have never exposed. Starting with the meaning of these acronyms, being Exchange Traded Products, in Spanish meaning “to products traded on the stock exchange”. Then these ETP are, according to the encyclopedia digital Investopedia, “are types of securities that track underlying securities, an index or other financial instruments. The ETP operate on bags similar to the shares, which means that their prices can fluctuate day to day and intraday. However, the prices of the ETP are derived from the underlying investments that track”. In Spanish, the ETP are a title of value, as the Future of Bitcoin, which is issued with an underlying asset that serves to be liquidated. Noting that the price of such ETP will depend on two factors: as it trades in the stock market and the underlying asset that gives value. For this reason, an ETP of Bitcoin refers to a degree value that uses a certain amount of Bitcoin. Therefore, they can be negotiated by the value of the ETP as such, associated to the fluctuations of Bitcoin. However, it should be noted that the ETP must be accepted by the stock exchanges concerned. It is not that any active function as underlying asset. For this reason, we find the following news.

The big apple bites Switzerland

As the regulations of the Stock exchange of New York are strict with the cryptocurrencies, the company with headquarters in the big apple, WisdomTree launched its ETP of Bitcoin on SIX, the Swiss stock exchange. The ETP, as such, is called the WisdomTree Bitcoin, or BTCW for short. In addition, although it has no trading volume, officially already can negotiate from SIX. “We have been monitoring the cryptocurrencies during some period of time … we have seen enough to believe that digital assets, like Bitcoin, are not a passing trend and may play a role in portfolios,” said Alexis Marinof, head of Europe at WisdomTree. Although it should be noted that for the time being is only available to professional investors. However, WisdomTree said that it expected that an ETP of Bitcoin will soon receive regulatory approval for a wider access. “We see that the technology of Blockchain and the digital currencies are transformative for the industry of asset management,” said the CEO of WisdomTree, Jonathan Steinberg. “Like the structure ETP has eclipsed the structure of mutual funds in a meaningful way, blockchain and the cryptocurrencies have the potential to change the way in which the investors participate in the financial markets worldwide.” The following two tabs change content below. I am a student of economics, interested in innovation and technological development, always faithful to that tomorrow will be a better day.

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