Hello Friends...
In toady cryptocurrency market everyone wants to be successful and gain profit from Bitcoin trading but some of them make a huge profit and some lose their whole assets. Apart from this aspect today I am going to share a good news for Bitcoin investors.
Bitcoin introduces Bitcoin Exchange Traded Note (ETN), its own alternative to the exchange-traded fund (ETF) for the United States considering their is no access to the ETF for the U.S. investors , as it was posponed by Security Exchange Commission till September 30. Now this ETN presents as an alternative to ETF. Unlike a regular ETF, it will act as an open-end unsecured debt note. Now the question is why Bitcoin ETF has not get approval yet. The answer is simple because the regulators of the US concerns about its liquidity and manipulation. Now the release of Bitcoin ETN shall act as an soft opening towards the approval of Bitcoin ETF.
Already been listed and regulated in Sweden, Bitcoin Tracker One (SEK) will now be quoted in the United States with US dollars. Released in 2015, in Sweden’s capital of Stockholm, Bitcoin Tracker One was the first bitcoin-based security on the NASDAQ/OMX regulated exchange. This tracker synthetically tracks the performance of the Bitcoin in the market for no fee. According to this tracker with the release of the Bitcoin ETN flow of investment in US is increased.
The gradual spread and adoption of Bitcoin ETN in U.S. will most likely to be an influential factor for the decision on Bitcoin ETF by Security Exchange Commission. The decision was already pending to September 30, and it is most likely to be delayed as SEC may contemplate the submitted proposal.
Difference between a Bitcoin ETN and Bitcoin ETF:
The major of the two difference is that ETN possess a greater risk to the investors over the ETF because in ETN their is no control of the investors for their assets which they are trading. Suppose the institution for the ETF go bancrupt then investors lose all their assets.
Second difference is taxation, as in ETN only the difference in the Buying and selling is taxable and is consider as long term gains in the capital. But on the other hand within the fund ETF directly buys and sells assets and consider as a short term capital gain which is more taxable than ETN.
Despite all the criticism and postponment some other cryptocurrencies assemble in favour behind the U.S. based Bitcoin ETF approval. Now see what will happen in the future however the approval is anticipated in 2019 rather than September.
Thank u friends...Hope you like the article..
If their is any query than post it in the comment section...