Announcing the launch of a financial product called "Bitcoin Tracker One", XBT Provider has created the world'due south first regulated Bitcoin exchange-traded note.

Working with Stockholm based brokerage and investment banking concern Mangold Fondkommission, XBT Provider has received the approval of the Swedish financial supervisory body Finansinspektionen. This authorization means that the financial notation "Bitcoin Tracker One" is immune to be traded on the Stockholm Nasdaq Nordic.

Speaking nigh the news, Alexander Marsh, CEO of XBT Provider explained how he hoped the move would allow more investors to feel they tin can safely speculate on Bitcoin.

"We are proud to offer the world`s first "Bitcoin tracker" to exist traded on a regulated exchange. By enabling this easy and secure manner to invest in Bitcoin we hope to take eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what nosotros believe to be the future of coin."

XBT Provider logo

The first twenty-four hours of trading is expected to be May 18, and individuals interested in the trading notation will demand to use a banker with a membership to the Nasdaq Nordic substitution.

Tracking the price of Bitcoin the The states Dollar, Bitcoin Tracker One will be averaging the BTC/USD trading price from BitFinex, BitStamp, and OKCoin, subtracting a service fee, and translating the final number into Swedish krona. The movement of this figure will requite investors, including hedge funds and alimony funds, the chance to betrayal themselves to rising and falling of Bitcoin'due south price within a traditional trading framework.

Unlike efforts on the other side of the Atlantic by the Winklevoss twins, and the Bitcoin Investment Trust, the nature of this "substitution traded notation" ways that the value of the Tracker can not only be affected by moves in the USD/BTC price, but besides by the credit rating of the issuer, XBT Provider. The exchange traded annotation too comes with a pre-determined maturity date, at which the issues cashes out the purchaser's note.

At the time of publication in that location are unconfirmed rumors on a Reddit discussion thread that the XBT Provider plans to maintain the investments as fully backed, meaning that all investments would be translated into actual BTC.

The company behind this, XBT Provider, is part of the well-known Swedish KNC group. Well-nigh famous for the Arctic based cloud mining service KNC Deject Miner, the group has recently been sued by some of its customers over the commitment and performance of KNCMiner's ASIC mining rigs.