Bitcoin, Ethereum ETN Assets Rise 5x – Trustnodes

Bitcoin, Ethereum ETN Assets Rise 5x


Bitcoin ETN abstract

Both bitcoin and ethereum have seen increased interest by institutional investors as far as ETN stats go, with assets under management at XBT Provider rising by 5x from their December low.

On the 7th of December, only $168 million where under management according to XBT’s stats and for eth it was just $30 million.

The picture now looks very much different with assets under management rising by 6x for eth to $182 million.

For bitcoin they’re up more than 4x to a far bigger total number of $730 million as of late June.

Bitcoin’s price has likewise risen by about 4x from a very brief circa $3,000 in December to now about $12,000.

While for eth it has risen less, some 3.75x from a very brief $80 to around $300 at the time of writing.

Investment in the ETN, therefore, has risen by more, and for eth quite a bit more, but they remain far off from peak prices.

For bitcoin, $1.25 billion were under management in December 2017 when price reached a brief $20,000 per coin.

For eth, close to $500 million were managed at its peak price in January 2017 when it reached a brief $1,420.

For eth, current assets under management are just 37% of its peak with the currency some 4x lower and still in red two years on.

While for bitcoin they’re at 60% of peak assets under management, with the currency now very much in green over a year, up 80%.

Bitcoin has been able to withstand the bear market far better than any other crypto probably in part because of its bigger market cap and thus higher liquidity.

The Exchange Traded Notes (ETN) play a part in that because they’re a security traded on Stockholm’s stock exchange.

They have both a euro and a dollar version with XBT Provider claiming that although this is a sort of an IoU debt instrument, they turn all invested funds into actual bitcoin, so it is fully backed.

This is one of very few ways of buying bitcoin on stock exchanges from a pension or other savings, with Switzerland recently greenlighting an Exchange Traded Product (ETP) which is somewhat similar to the ETN.

There is as of yet no Exchange Traded Fund (ETF) anywhere in the world, with numerous applications in America, but few seem to be trying in Europe.

Whether that will change remains to be seen, but some interest from institutional investors appears to be increasing.


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