If you want to trade cryptocurrencies like Bitcoin and Ethereum without actually owning Bitcoin and Ethereum you can use an on exchange-listed ETN or exchange-traded note.
Please note that since this article was written the FCA has banned retail traders from trading cryptocurrency derivatives. If you would like to speculate on Bitcoin and cryptocurrencies you need to use a cryptocurrency exchange or professional trading account.
We seem to talk about cryptocurrencies quite a lot, but they do highlight some interesting ways to trade.
Obviously, if you want to speculate on Bitcoin and Ethereum, you could use a spread betting and CFD broker like IG and just trade on an OTC basis. But, what if you actually want to trade an on exchange product?
If you want the security of trading an on exchange product Saxo Capital Markets offers access to a couple of cryptocurrency exchange-traded notes:
- Bitcoin Tracker One: Listed on Nasdaq OMX Stockholm, Traded in EUR and SEK
- Ethereum Tracker One: Listed on Nasdaq OMX Stockholm, Traded in EUR and SEK
The advantage of these trackers is that if you don’t want leverage and don’t want to deal with the messy business of actually owning cryptocurrencies you can still get leverage. You can also deal in smaller trade sizes.
If you do want leverage you can trade them through DMA CFDs and still go short. It’s important to note though that ETNs are different to ETFs in that they are underwritten by banks rather than assets, so are subject to additional risk that can affect pricing.
Of if you don’t want to touch cryptocurrencies with a barge pole, but would rather invest in blockchain technology, Saxo has highlighted 10 examples of companies that can give you exposure to the
IBM Co. – IBM:xnys
Overstock.com Inc. – OSTK:xnas
Square Inc. – SQ:xnys
Cboe Options Exchange – CBOE:xnys
BTL Group Ltd. – BTL:xtsx
Global Blockchain Technologies Corp. – BLOC:xtxs
MGT Capital Investments – MGTI: xnys
Bitcoin Group SE – ADE:xetr
Digital X Ltd. – DCC:xasx
Riot Blockchain Inc. – RIOT:xnas
NVIDIA Inc. – NVDA:xnas
Advanced Micro Devices Inc. – AMD:xnas
You can read more about these companies on Saxo’s website.