How does it affect the market? Bitcoin ETN and ETFs need to mature in order to bring the expected corporate adoption.
Bitcoin ETFs are frequently on the agenda, while Bitcoin’s adoption by institutions seems to have stopped.
In January 2017, the CBOE and CME started the Bitcoin futures trading as an excuse for crypto bulls and prices rose at a time. But in the intervening time, things have been reversed, and the price fell free, with big sales in a row. With the SolidX Bitcoin ETF application withdrawn as of yesterday, we can say that the expected corporate interest has declined. Also Bitcoin futures transactions have not become more popular, CBOE chairman attributed this situation to the lack of sufficient choice of institutional investors.
ETN and ETF’s Difference
Although the ETN and ETFs are similar to the general characteristics, they are separated at several important points. The ETFs really keep the value of the price, but they don’t have to have value for ETNs. ETN is actually a debit paper offered by a contractor. Although ETNs pay according to the performance of the value, changes can be seen in payments according to the organization offering the ETN (credit risk rating).
ETNs can be bought and sold like other investment vehicles. ETNs make more effective price tracking than ETFs, and often allow easier taxation in the long term. In addition, ETNs can help investors benefit more from volatility. In this case, the spread of ETNs can create a more volatile and speculative crypto money market.
ETNs have been used in Europe for a while, but the impact is very low. An institution in Sweden has been offering Bitcoin ETNs since 2015, but has not received the expected attention. In the US, Bitcoin ETN regulations are made and, if presented by reliable institutions, may lead to a much different reaction from Europe, which may also stimulate the futures market.