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XBT Provider has announced its plans to distribute the proceeds from the sale of 44,471 bitcoin cash to eligible holders of its exchange-traded notes (ETNs).
Also read:Â Bitcoin ETN Crosses $100 Million After Unprecedented Demand From Investors, Partners With Xapo
XBT Providerâs Bitcoin Cash
The Swedish-domicile issuer of bitcoin and ether ETNs, XBT Provider, announced on Thursday its plans to distribute bitcoin cash (BCH) proceeds.
XBT Provider offers two bitcoin ETNs called Bitcoin Tracker One and Bitcoin Tracker Euro. It also recently launched ether ETNs called Ether Tracker One and Ether Tracker Euro. All four certificates are listed on the Nasdaq Nordic exchange in Stockholm and are currently available for trade in 179 countries.
âThese trackers are designed to mirror the return of the underlying asset, bitcoin (in Swedish Kronor and Euro, respectively),â the company described its bitcoin products, reiterating that âinvestors in the issuerâs certificates are not holders of bitcoin.â While ETN investors do not hold bitcoin, there is a hedging arrangement between XBT Provider and its certificatesâ guarantor, Global Advisors (Jersey) Limited. XBT Provider elaborated:
Notwithstanding that the issuer and the guarantor have no legal requirement to distribute any value created from a fork (including the BCH fork) (other than any enhanced performance of the coin which remains as âbitcoinâ), the issuer wishes to pass such value created (or as much thereof as is practicable) through to the holders of its certificates at the time of the fork.
Bitcoin Cash Proceeds Distribution Plan
Following the BCH fork, on August 1, XBT Provider entered a three-month âobservation periodâ to discuss the best approach to distributing BCH proceeds as well as to sell the coins obtained from the fork. The company detailed on Thursday:
During the three-month âobservation periodâ, the issuer sold 44,471 âbitcoin cashâ coins, for a USD value of $14,587,291. These proceeds, less the costs of implementing and administering the distribution plan, will be available for remittance for the benefit of the holders of its bitcoin-referenced certificates at the opening of trading on August 1st.
Based on the proceeds, XBT Provider received approximately $328 per BCH on average. At the time of writing, the BCH price has almost doubled to $641.36.
âIndividuals and / or nominees will be required to provide additional identification / âknow your customerâ information in order to be able to receive a distribution,â the company explained. In addition, a portal is being developed for eligible certificate holders to apply for a distribution. The portal is âcurrently anticipated to be available for use by Monday, 20 November 2017,â the company added.
XBT Providerâs bitcoin ETNs have been gaining popularity over time. In June, they experienced an âunprecedented volume in trading and demand from both retail and institutional investors searching for exposure to bitcoin,â the company announced, adding that its assets under management had crossed the $100 million threshold. This followed their addition to the platform of Britainâs brokerage firm for private investors, Hargreaves Lansdown.
What do you think of XBT Provider distributing bitcoin cash proceeds? Let us know in the comments section below.
Images courtesy of Shutterstock, Nasdaq, XBT Provider, and Coinmarketcap.
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The post XBT Provider Unveils Distribution Plan After Selling 44,471 Bitcoin Cash Coins appeared first on Bitcoin News.
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