Various financial institutions are looking for ways to make Bitcoin investing accessible to mainstream investors. That is difficult due to [the lack of] regulatory measures. Vontobel, a Swiss institution, introduced their Bitcoin tracker certificate in July of 2016. Let’s take look at what this product is all about and how it can affect the future value of Bitcoin.
Vontobel’s Bitcoin Certificate is a Mainstream Tool
Mainstream investors will not buy cryptocurrency from an exchange or a Bitcoin ATM. Instead, they will look for OTC trading opportunities, or even use dark pools to place large orders not linked to a public order book. The one downside to doing so is how investors are directly exposed to price volatility, which is something most people prefer to avoid for obvious reasons.
Several initiatives have been launched to introduce Bitcoin to mainstream investors through traditional investment vehicles. The Bitcoin ETFs are by far the best-known examples, although none of them have a good chance to succeed right now. The SEC will likely not approve an official Bitcoin ETF. There is a huge lack of regulation, and it will take months, if not years until that situation changes.
Vontobel, a Swiss company, has tried doing things a bit differently. In July of 2016, they became the first Swiss issuer to offer a tracker certificate on Bitcoin. Any investor who this Bitcoin’s future is bullish can participate in investing through a traditional financial vehicle. Vontobel’s Bitcoin certificate is publicly traded on the SIX Swiss Exchange. The world will need more offerings like these, as there is a lot of capital waiting to venture into cryptocurrency through traditional solutions.
The Vontobel certificate on Bitcoin is denominated in US Dollar and keeps track of the Bitcoin price in USD. Investors can purchase this investment certificate to invest in Bitcoin indirectly. Not being exposed to price volatility directly and still being able to reap all of the potential profits makes the Vontobel Bitcoin certificate an intriguing investment. Every certificate is valid for two full years, which means it is a longer term investment.
Given Bitcoin’s price surge throughout late 2016 and early 2017, the Vontobel Bitcoin certificate has helped Swiss investors profit nicely. Bitcoin’s momentum is far from over, and the price may even hit $5,000 in the next year or so. The prospects of the future Bitcoin price are looking good. This also means investment opportunities such as Vontobel’s Bitcoin certificate will become more appealing to mainstream traders and investors.
At the time of writing, the VONCERT on Bitcoin was valued at $2,677, which is around $120 above the actual Bitcoin market price. It is not uncommon for these traditional investments linked to Bitcoin to include a slight premium to the global market average. In all markets, investors have to pay a premium for the convenience.
Sounds like a great idea. I wish banks would offer this. I would buy this through a bank! I would also lend out Bitcoin to a bank – still waiting for Local Banks to offer this service!
Banks will try to come up with a way to fractional reserve bticoin.
This seems absolutely ridiculous. I would rather invest directly. It makes sense.
You’re Trading access for a substitute of the thing you really want.
Smart move : you buy Bitcoin in one click instead of using geek addict software/platform/hardware.
You r fylly KYC compliant,u pay all taxes on your benefits.
U do not have to care about beeing compliant because this way u r part of a fully compliant financial system.
And this open the door to BIG money.
Bad stuff for u guys : u r nothing comparing to this upcoming tsunami.
Miners do not care about your voice, as such big bitcoin companies. Now Wall Street will have a grip on crypto.
Buy bye early adopters, time 4 big players. You’re out!
There is already a certificate with long term investment ie no maturity!! The vontobel expires next year 2018! The xbt provider bitcoin etn certificate has no maturity and runs on an orderly exchange with depth of market orders! Its traded in euro and sek , so much better than this certificate!!! With $100m in asset its is by far the better exchange traded bitcoin product than the swiss one!!
That is what certificate are there to do, to remove the problems you encounter having to go through the complex process of registrating with an crypto exchnage: here you go simply with your broker and you can even put it in your sipp!
You can!!!! via your broker with the xbt provider bitcoin etn
SE0007525332 and can put it in your sipp
Really in Australia ?
But won’t people like myself who have 1 bitcoin still be ok?
Check your broker if he has access to European markets, it is that simple
Not in the near future!!!!
However i do see the need to regulate ICO ther are a disaster waiting to happen…
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