Bringing institutional investors to cryptocurrency is not easy. CoinShares, a company spearheaded by former JPMorgan Chase trader Daniel Masters, is making a lot of headway. More specifically, the company is launching an exchange-traded note for Ethereum. This new product joins the company’s Bitcoin ETN, which has been around for two years now. A growing focus on cryptocurrencies warrants this somewhat surprising decision, to say the least.
CoinShares proves to be a rather interesting company. Their initial Bitcoin ETN was considered to be quite a surprise. However, the company feels now is the time to come up with a new product. Focusing on Ethereum makes a lot of sense in this regard. Having more exchange-traded notes linked to cryptocurrency can only be a good thing for the industry. it is unclear what this will mean for the Ether price itself, though.
A Major Ethereum ETN to Shake Things up
It is good to see products like this come to market. The Ethereum ETN provides a gateway for traditional investors to invest in cryptocurrency. This new investment vehicle is 100% passive, though, which makes it very different from actively traded options.It is expected the ETH value and Ether price will be correlated by as much as 99%. A remarkable claim that won’t be easy to back up, though.
One thing that remains a big question is who will benefit from this Ethereum ETN. The product will only be available to European traders for now. The ETN will trade on Nasdaq Stockholm. There is no indication this product will come to institutional investors in other parts of the world, though. That is a rather strange decision, although it is not entirely unexpected either. Regulatory reasons prevent a global rollout of such an investment vehicle for the time being.
All things considered, CoinShares is a making a major impact as we speak. It is evident investors want to get involved in cryptocurrencies. Buying them directly is still a hassle, though. An Ethereum ETN like this one can certainly help in this regard. Whether or not there will be a big demand, has yet to be determined. It is evident there will be more correlations between institutional investors and cryptocurrencies.
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