Swedish trading platform 21Shares has listed its first two physically-backed Exchange-Traded Notes (ETNs) on Nasdaq Stockholm. The underlying assets of the financial products are Bitcoin and Ethereum respectively.
The two instruments listed represent a new segment for ETNs. ETNs are unsecured debt securities that track an underlying index of equities and trade on a major exchange. Exchange-Traded Notes are comparable to bonds; however, they do not pay interest on a regular basis.
Nasdaq Stockholm’s First ETN issuer
21Shares is a Swiss company that allows users to invest in several cryptocurrencies through traditional ETPs. It is the first issuer of physically-backed crypto ETNs on Nasdaq Stockholm, with Bitcoin (ABTC) and Ethereum (AETH) as underlying assets.
21Shares had over $3 billion in 20 European cryptocurrency exchange-traded instruments and 82 listings as of November 2021.
Talking about the partnership Hany Rashwan stated;
“We are excited to become the first issuer of physically-backed ETNs for Nasdaq Stockholm, one of the most tech-forward global exchanges. Our partnership is a strong endorsement of 21Shares’ mission to make cryptos more accessible in a simple and regulated manner,”CEO, Hany Rashwan.
The new ETNs, according to the statement, will give investors access to cryptocurrency investment opportunities such as Bitcoin and Ether.
Nasdaq Stockholm was one of the first exchange-listed trading platforms to accept bitcoin as an underlying asset in 2015. Helena Wedin, the global marketplace’s European Head of ETPs, spoke more about ETNs and 21Shares’ move. She said ETNs allow investors to invest in non-traditional assets while keeping the transparency of a regulated market.
“We are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer,” she added.
21Shares Offers Crypto ETPs for Saving Accounts
21Shares teamed with Comdirect, a German online retail platform, earlier this year. The partnership saw 21Shares’ bitcoin exchange-traded products added to Comdirect’s savings plan program (Spar plan). Comdirect’s almost three million consumers were able to get digital asset exposure in their savings accounts as a result of the development.
Rashwan emphasized his company’s earlier efforts in Germany, claiming that 21Shares was the first cryptocurrency issuer to publish a “fully collateralized, 100 per cent physically-backed bitcoin ETP” on major German exchanges in 2019.
This agreement, according to Marco Infuso, Managing Director of Business Development for the DACH area (Germany, Austria, and Switzerland), represents a “milestone in democratization of crypto investments.” Many investors, he believes, have been considering buying BTC but have lacked the necessary financial instruments to put the asset into a savings plan.
Regulated Exchanges for Cryptocurrency
Most traditional banks and brokers, according to the news release, allow investors to trade all ETNs listed on Nasdaq Stockholm. This is a first, opening up new options for those who want to engage in cryptocurrencies but are hesitant to do so on unregulated exchanges.
Throughout the preceding year, the cryptocurrency market saw a significant increase in value. Despite recent price drops, there is still a lot of interest in cryptocurrencies.
The likelihood of more institutional participation in the market could be one explanation for the ongoing interest. As institutional interest in cryptocurrency grows, more products like ETNs will likely be offered on regulated exchanges. VanEck launched Solana (SOL) and Polkadot (DOT) ETNs on Deutsche Boerse’s Xetra, revealed in September.