CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

21Shares launches new crypto ETNs on new Nasdaq platform

By Kevin Donovan

18:59, 7 December 2021

Bitcoins on a keyboard
21Shares launches Bitcoin, Ether ETNs over Nasdaq Stockholm exchange – Photo: Shutterstock

Nasdaq launched a new exchange-traded note (ETN) platform in Stockholm, Sweden for securities tracked by physical underlying assets supported by a market maker.

The first two ETNs listed on the Nasdaq Stockholm exchange are Bitcoin- and Ether-backed notes issued by cryptocurrency asset manager 21Shares, the company said in a press release. The new ETNs: 21Shares ABTC and 21Shares AETH are each 100% weighted by 21Shares’ Bitcoin and Ether holdings, respectively.

“Exchange Traded Notes provide access to alternative investments while maintaining the transparency of a regulated marketplace, and we are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer,” said Nasdaq’s European Head of Exchange Traded Products Helena Wedin.

21Shares manages $2.9bn in Crypto

Zug, Switzerland-based 21Shares manages 20 crypto exchange-traded products over 82 separate listings. As of November, 21Shares managed a total of $2.9bn (£2.2bn) in various cryptocurrencies. “We are excited to become the first issuer of physically-backed crypto ETNs for Nasdaq Stockholm, one of the most tech-forward global exchanges,” 21Shares CEO Hany Rashwan said. “Our partnership is a strong endorsement of 21Shares’ mission to make cryptos more accessible in a simple and regulated manner.”

XRP/USD

1.50 Price
+3.870% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

XLM/USD

0.53 Price
-6.820% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00216

BTC/USD

98,583.90 Price
+1.430% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

ETH/USD

3,524.59 Price
+4.370% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

The ETNs are available to trade through most banks and brokerage firms, the release added.

Coinbase is the custodian for both products. Flow Traders, Jane Street, L&S, GHCO, DRW Holdings and Bluefin Europe are counterparties for both ETNs and The Law Debenture Trust Corp. is the collateral agent.

The ETNs may be tracked by ISIN CH0454664001 for ABTC and CH0454664027 for AETH.

Read more: Australian securities regulator says crypto ETPs pose unique risks

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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