XBT Provider: CoinShares BTC & ETH Exchange Traded Tracker?

According to XBTs website, the new platform is one that is geared towards making it easier for users to access different cryptocurrency markets. It’s specifically more for Bitcoin as well as other coins like Ethereum. They also give investors the ability to give investors the ability to purchase exchange-traded notes or ETNs.

What Is XBT Provider?

XBT Provider claims that they’re based out of Stockholm Sweden. But besides that, the website doesn’t really give any information about who the founders of the company are. They only go on point out that XBT Provider is the issuing business for all the ETNs that are bought and sold by different investors.

Besides that, the website itself is registered to Rus Newton, who is an asset management professional. He works specifically with cryptocurrencies according to the website. Newton is also the claimed owner of Global Advisors Limited out of the United Kingdom.

It doesn’t make much sense that the company would have headquarters located in Stockholm when the website itself is registered to a businessman who live in England. The company is possibly just another shell for Global Advisors and Rus Newton. There isn’t any transparency to speak of, which leaves us with a complete distrust for them.

XBT Provider BTC & ETH Exchange Traded Tracker Products?

XBT Provider is said to sell ETNs to Bitcoin and Ethereum Marketplaces. But for the people who are uninitiated, and ETN is just another instrument for finances that promises the accurate tracking of the underlying assets. In the case of this company, it would be in relation to the USD for each Bitcoin and USD for Ether.

But it’s not entirely clear as to how ETN is an actual bond. It’s like an unsecure note for debt, like you would see issued by a financial institution that can be bought and sold whenever you want or held outright until it matures. But with the case of XBT, the investors are the only ones who are at a high level of risk, if the company goes belly up – they’re the ones who will suffer. It would be like an issuing bank going bankrupt.

XBT Provider Opportunity?

ETNs are said to be advantageous because they are promised to trigger longer-term gains of capital rather than short ones. It is said, this results in a lower tax rate in the end – also that a lack of tracking errors because the fact there is no buying or selling any assets that underlie ETN. Apparently, this makes investing with ETN advantageous to some. But again, the lack of transparency is a big red flag that raises a lot of suspicion.

XBT Provider Verdict?

In all honesty, as to whether or not you should invest into cryptocurrency linked ETNs or not, is a bit beyond the depth of this review. And although it’s more than we can accurately advise on, we can tell you a great piece of advice. You don’t need to be genius or specialize in ETNs to know that if you’re interested in investing in them, they are a highly complex financial instrument in regard to digital currency. And that we recommend you choose a reputable issuer, one that can be trusted in full. And this is especially true because any type of ban or lender that ends up going bankrupt will be 100% default on an ETN. And most importantly, the investors will be the ones who end up at a total loss.

When it comes to XBT Provider, there is a strange provenance going on – they are located ultimate in Stockholm Sweden, but have a secret financial adviser who is based out of the United Kingdom running in the background. That’s not entirely trustworthy with the kind of credit score the issuer has, and it’s likely an unsafe investment. There are definitely other ETNs out there that are completely transparent.

And you want to take a lot more time researching before you start investing blindly into a company that gives out almost no information. Also, that goes through a considerable amount of effort to hide as much as it can about itself from any investors. Basically, there’s not enough information about XBT Provider to consider them a trustworthy place to put your money. It’s a golden rule that you never under any circumstance give money to a company or entity online who hides information about themselves. Instead, do the research and find a more reputable company that is transparent about who they are.