Nasdaq Stockholm has announced that 21Shares has listed their first two physically backed exchange-traded notes (ETNs) on the Swedish trading platform. With Bitcoin and Ether as underlying assets, the two instruments listed represent a new segment for ETNs — a type of unsecured debt security that tracks an underlying index of equities and trades on a major exchange.
The new ETNs will provide investors access to investment opportunities in cryptocurrencies.
According to the announcement, the new ETNs will provide investors access to investment opportunities in cryptocurrencies such as Bitcoin and Ether. Helena Wedin, European head of exchange-traded products at Nasdaq, says that exchange-traded notes allow one to invest in non-traditional assets while maintaining the transparency of a regulated market. She adds that “we are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer.” According to the press release, most traditional banks and brokers allow investors to trade all ETNs listed on Nasdaq Stockholm.
Cryptocurrencies have witnessed an increase in institutional investment.
The cryptocurrency market has experienced a significant rise in valuation throughout the previous year. Despite some recent price dips, interest in cryptocurrencies continues to be high. One reason for this sustained interest may be the possibility of increased institutional investment in the market. As institutional investment in cryptocurrencies increases, we’ll likely see more products such as ETNs being listed on regulated exchanges. As reported earlier, VanEck introduced Solana and Polkadot ETNs on Deutsche Boerse’s Xetra.
The listing of two physically backed exchange-traded notes (ETNs) on the Nasdaq Stockholm opens up new possibilities to investors interested in investing in cryptocurrencies but who are not comfortable doing so on unregulated exchanges.