Exchange-Traded Bitcoin Vehicle Announces Cold Storage Deal
XBT Provider, a Swedish bitcoin investment company, has announced a new partnership with cryptocurrency storage startup Xapo.
XBT Provider, a Swedish bitcoin investment company based in Stockholm, has announced a new partnership with cryptocurrency storage startup Xapo.
Bitcoin held offline in 'cold storage' on behalf of investors in XBT's exchange-traded bitcoin note (ETN), which is available on the Nasdaq Stockholm exchange, will now be secured by the Switzerland-based company.
Products like XBT's provide a way for investors to gain exposure to bitcoin markets without having to purchase or hold the digital currency itself. The provider keeps the lion's share of its coins in cold storage, though smaller amounts may be kept either on an exchange or in a multi-signature 'hot wallet', per the company's safety policy.
Wences Casares, Xapo's CEO, said in a statement:
The partnership comes more than a year after Swedish regulators first approved the ETN for launch. Last month, the firm revealed that it was working with one of the more notable asset managers, Hargreaves Lansdown, to provide access to local investors.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Xapo.
Lock image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.