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Bticoins now trading on the stock market

Kaspar Huisman | 6
VR 22-02-2019
Bitcoins have been in the news a lot recently. Have you ever considered buying Bitcoins? Or perhaps one Bitcoin, because the price has now risen to over 2,300 euros per coin (date July 4, 2017). However, if you purchased this Bitcoin in 2010, you probably only paid a few cents. Below you can see a chart showing the price evolution.

bitcoinevolution

Recently, BinckBank clients have also been able to invest in virtual currency on the stock exchange. The virtual currency Bitcoin is now trading as Exchange Traded Note (ETN) on the stock market.

What is a Bitcoin?
The Bitcoin is one of the different crypto-currencies or digital money that can pay for goods and services. Without the intervention of a bank, traditional payment methods can be avoided, so payment is made anonymously via the internet and virtually free of charge. At present, the use of digital currency is often smaller than regular currency trading. But digital currency is gaining popularity (see Chart).

If you see a future in this digital payment solution, it is now possible to invest in it without having to purchase the crypto-currency directly. There are various opportunities at BinckBank to invest in Bitcoin and Bitcoin-related companies. You can view the results below:

bitcoinresults

One possibility is the Bitcoin Tracker One, which is available in Swedish kronor (SEK) and euros (EUR). This tracker is listed in Stockholm. The euro variant has ISIN code SE0007525332.  The issuer is the fundraiser XBT Provider and the tracker has a 2.5% cost per annum.

This tracker has a ratio of 20, which means that at a Bitcoin price of $2,600, the tracker value is 20 times lower, at $130. It is then converted to euros and corrected with the cost. Currently (July 4, 2017), Bitcoin's rate is around $ 2,620 at a euro/dollar rate of 1.135. The tracker value is €114.

Trackers: What are they again?
Like an Exchange Traded Fund (ETF), an Exchange Traded Note (ETN) also follows an underlying value, but there are some differences. For example, an ETN depends more on the issuer's credit rating (such as a bond).

Conclusion
With the arrival of this ETN, it is now possible to invest indirectly in Bitcoins. With the fluctuating course and unknown nature of this investment, this is the speculative part of a home investment portfolio. Did you miss the boat or is this just the beginning...?

The information in this column should not be interpreted as individual investment advice.  Although BinckBank compiles and maintains these pages from reliable sources, BinckBank cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this column without prior verification or advice, is at your own risk.  We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks.  Binck Bank Spain - All Rights Reserved.

Kaspar Huisman

Kaspar Huijsman is the director of BinckBank in Spain & Portugal. He has been working for BinckBank for over 16 years now and founded the office in Marbella in 2006. 

The information in this article should not be interpreted as individual investment advice.  Although BinckBank compiles and maintains these pages from reliable sources, BinckBank cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk.  We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks. 

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