Bitcoin Exchange-Traded Note Swells to Record After Big InflowsBy
Investors rushing to ride the cryptocurrency surge pushed assets in the market’s main exchange-traded products to records Wednesday.
Swedish Bitcoin Tracker added 2.1 million euros ($2.5 million), the largest inflow for the exchange-traded note since July, as total assets grew to 256 million euros. The XBT Provider Ethreum ETN that tracks ether swelled to 57 million euros.
The ETNs provide investors such as JPMorgan Chase & Co and billionaire Mark Cuban, with a way to access digital currencies through brokers instead of via online exchanges or wallets. Unlike an exchange-traded fund, which holds the asset it tracks, an ETN is an unsecured debt security, with the net asset value derived from relevant exchanges or the futures market.
Bitcoin marched through $10,000 for the first time on Wednesday, taking this year’s price surge to 11-fold even as warnings multiply that the largest digital currency is an asset bubble. The gains are partly driven by a move toward mainstream investing after CME Group Inc. said a month ago it plans to start offering futures contracts.