Nasdaq Stockholm has announced that 21Shares has listed its first two physically secured Exchange Traded Notes (ETN) on the Swedish trading platform.
The two listed instruments with Bitcoin (BTC) and ether (ETH) as underlyings represent a new segment for ETNs – a type of unsecured debt instrument that tracks an underlying stock index and is traded on a major stock exchange.
According to the announcement, the new ETNs will give investors access to investment opportunities in cryptocurrencies like Bitcoin and Ether.
Helena Wedin, European Head of Exchange Traded Products at Nasdaq, said that exchange-traded debt securities make it possible to invest in non-traditional assets while maintaining the transparency of a regulated market. She added: “We are pleased to introduce this new segment on Nasdaq Stockholm with 21Shares as the first issuer.”
According to the press release, most traditional banks and brokers allow investors to trade any ETNs listed on Nasdaq Stockholm. This is a first that opens up new opportunities for investors interested in investing in cryptocurrencies but who are uncomfortable with it on unregulated exchanges.
The cryptocurrency market has seen a sharp rise in valuations over the past year. Despite some recent price cuts, interest in cryptocurrencies remains high.
One reason for this continued interest may be the possibility increased institutional investment on the market. As institutional investments in cryptocurrencies increase, more products like ETNs are likely to be listed on regulated exchanges. As Cointelegraph reported in September, VanEck presented Solana (SOL) and polkadot (POINT) ETNs on Xetra of Deutsche Börse.