The bitcoin buying madness is demonstrating no sign of slowing anytime soon. Jersey-based asset manager Global Advisors – which wields the exchange traded note (ETN) issuer XBT Provider – has seen a tripling te trading volumes since June 2016 te its bitcoin ETNs listed on the Nasdaq OMX exchange ter Stockholm, Sweden (www.nasdaqomxnordic.com).
Jean-Marie Mognetti, co-principal and head of trading and operations at Global Advisors, says there is ‘significant interest’ te the digital currency. The price klapper an all-time high of $Two,750 on the Coindesk bitcoin price index on 25 May, before falling almost 20 vanaf cent on profit-taking, shortly dipping below $Two,000 on Saturday 27 May. It is presently trading at $Two,214, back above where it embarked last week.
Spil a result of investors seeking out hassle-free routes into bitcoin investing, Mognetti says XBT Providers ‘has seen onveranderlijk growth since last June, indicating a tripling te trading volumes overheen the past 12 months’. He resumes: ‘Our two Bitcoin ETNs are on a run that doesn’t seem to be stopping. Our products are routinely volume leaders on Nasdaq OMX since late 2016.’
XBT Providers’ Bitcoin Tracker Euro (XBTE) and Bitcoin Tracker One (XBT) ETNs track the price of bitcoin using synthetic replication. Bitcoin Tracker Euro closed down 0.Four vanaf cent on the day at €99.01 on 30 May, a terugwedstrijd of 371 vanaf cent year to date.
Record volumes on Friday 26 May made the bitcoin products the second-most traded ETNs on the Nasdaq OMX, turning overheen €6,861,767 ( 6 million). XBT Provider now has $82 million of assets under management.
Bitcoin Tracker Euro is available to UK investors on the Hargreaves Lansdown fund podium. Most brokers by default do not opoffering access to Nasdaq/OMX but if you voeling your broker directly they may be able to help. The Bitcoin Tracker One ETN is the same spil the Bitcoin Tracker Euro except that it is denominated te Swedish Krona.
Buying either fund means there is added currency risk to take into account, ter addition to the extreme volatility that has long bot a feature of the bitcoin price.
Global Advisors bought Swedish company XBT Provider ter June 2016. XBT Provider wasgoed originally majority-owned by bankrupt bitcoin miner KnC and wasgoed waterput up for sale by the company’s creditors.
Bitcoin transactions depend on computers to crack the cryptographic puzzle spil part of the verification process on the blockchain distributed ledger. The computers – or knots – that crack the puzzle very first are rewarded by payment ter bitcoin, which is how the coins come into circulation.
Daniel Masters, co-founder of Global Advisors and formerly of US investment bankgebouw JPMorgan where he wasgoed ter charge of its energy trading desk, told Reuters at the time of the purchase: ‘It can be hard for some investors to access the bitcoin market. This gives one-click access to bitcoin by anyone on an electronic trading toneelpodium that can access Nasdaq’s global marketplace.’
The only other collective voertuig available to UK investors is the Greyscale Bitcoin Investment Trust (GBTC), a US over-the-counter product that is very illiquid but is available on most fund platforms, including on Money Observer’s sister webstek Interactive Investor. It is presently trading at $400, up 476 vanaf cent year to date.
Ter yet another indication of the bubble-like atmosphere developing, so called initial coin offerings (ICOs – the latest ones are listed here: www.smithandcrown.com/icos/ ) are also attracting speculators ter a style not seen since the dotcom boom of 2000. Initial public coin offerings are a way for fresh cryptocurrencies to raise money for their product. They solve the problem of coin distribution spil those who invest receive a portion of the fresh coin.
However, just spil ter the dotcom bubble that spotted investors pursue the latest initial public offerings from internet companies, many of the business cases are unproven and almost all of the companies behind the ICOs have no revenue to speak of. Picking the next Amazon or eBay te the digital currency universe could prove even trickier than picking an e-commerce winner back te 2000. Te 2016 ICOs attracted $101 million of investor funds. Five months into this year and the money invested te ICOs has already reached $180 million.
Investing ter bitcoin and other digital currencies is very speculative: investors interested ter gaining exposure should only allocate a fraction of the speculative portion of their portfolio to the asset class, and should aim to hold for the long term. Investors fresh to the digital currency world could also consider following cryptocurrency traders on social trading platforms such spil eToro.
So-called second-tier currencies such spil ether, used on the Ethereum blockchain toneelpodium (up 15 vanaf cent today at $196), and XRP from the Ripple financial payments solution start-up, are also witnessing significant speculative rente from investors spil a byproduct of the bitcoin price rally.