XBT Provider Unveils Distribution Plan for Bitcoin Cash After Selling 44,471 Coins

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).

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XBT Provider’s 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 Unveils Distribution Plan for Bitcoin Cash After Selling 44,471 CoinsXBT 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.

“These trackers are designed to mirror the return of the underlying asset, bitcoin (in Swedish Kronor and Euro, respectively),” the company described its bitcoin products, reiterating that “investors in the issuer’s certificates are not holders of bitcoin.” While ETN investors do not hold bitcoin, there is a hedging arrangement between XBT Provider and its certificates’ 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 ‘bitcoin’), 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 “observation period” to discuss the best approach to distributing BCH Read More Here