What is an ETP?
Before proceeding to the news, we consider that it is necessary to explain what a specific Bitcoin ETP is, since it is a financial instrument that we have never exposed. Starting with the meaning of these acronyms, being Exchange Traded Products, in Spanish meaning “products traded on the stock market”.
So these ETPs are, according to the Investopedia digital encyclopedia, “they are types of securities that track underlying values, an index or other financial instruments. ETPs operate in similar stock exchanges, which means that their prices can fluctuate day by day and intraday. However, ETP prices are derived from the underlying investments they track. ”
In Spanish, ETPs are a security, such as Bitcoin Futures, which are issued with an underlying asset that serves to be liquidated. Stressing that the price of these ETPs will depend on two factors: how they are traded on the stock exchange and the underlying asset that gives them value.
For this reason, a Bitcoin ETP refers to a security title that uses a certain amount of Bitcoin. Therefore, they can be negotiated for the value of ETP as such, associated with Bitcoin fluctuations.
However, it should be noted that ETPs have to be accepted by the corresponding stock exchanges. It is not that any asset functions as an underlying asset. For this reason, we find the following news.
The big apple bites Switzerland
As the regulations of the New York Stock Exchange are strict with cryptocurrencies, the Big Apple-based company, WisdomTree, launched its Bitcoin ETP on SIX, the Swiss stock exchange.
The ETP as such is called WisdomTree Bitcoin, or BTCW for short. In addition, although it does not yet have any exchange volume, it can officially be negotiated from SIX.
"We have been monitoring cryptocurrencies for some time and ... we have seen enough to believe that digital assets, such as Bitcoin, are not a passing trend and can play a role in portfolios," said Alexis Marinof, head of Europe at WisdomTree .
Although it should be noted that at the moment it is only available for professional investors. However, WisdomTree said it expects a Bitcoin ETP will soon receive regulatory approval for broader access.
"We see that Blockchain technology and digital currencies are transformative for the asset management industry," said WisdomTree CEO Jonathan Steinberg. "Just as the ETP structure has eclipsed the mutual fund structure significantly, blockchain and cryptocurrencies have the potential to change the way investors participate in financial markets worldwide."
If this article seems informative, Leave a positive vote and resteem, this will not help much, Thanks for stopping by
 |
 |
|---|