As
expected, the introduction of Bitcoin ETFs has spurred another wave of demand
for cryptocurrencies. However, European traders can’t invest directly in these increasingly popular instruments.
To solve
this issue, the Polish brokerage firm XTB (WSE: XTB) has just offered an alternative to
these instruments, announcing the addition of three new exchange-traded
products (ETPs). This move gives investors more ways to gain exposure to the digital
assets.
The new
products include two exchange-traded notes (ETNs) focused solely on Bitcoin and
one ETN based on a mix of the ten most popular cryptocurrencies. They come amid
growing investor demand for crypto assets as new Bitcoin ETFs launch in the US.
“We
are regularly answering investors’ questions about when they can start
investing in Bitcoin ETFs in Europe,” said Filip Kaczmarzyk, the Member of
the XTB Management Board. “While we don’t know the answer, we wanted to
find an alternative given the interest in crypto.”
Starting
from this week, XTB’s offering will include three new ETNs:
- BTCetc
Bitcoin Exchange Traded Crypto, - VanEck
Bitcoin ETN, - VanEck
Crypto Leaders ETN.
XTB said it
decided to add ETNs given their long-standing availability in Europe. Over the
years, leading brokers have used them to give clients access to hard-to-reach
assets.
Filip Kaczmarzyk, XTB
“Until
now, XTB offered the possibility of investing in cryptocurrencies only through
CFD contracts,” Kaczmarzyk added. “However, seeing the demand from
investors, we decided to find an alternative for those who are looking for
similar opportunities that American ETFs offer.”
For XTB,
this is another new feature in their offering after the fintech announced at
the beginning of the month that it wants to enter the UK’s £400 billion
Individual Savings Accounts (ISAs) market. Finance Magnates discussed ISAs with
Joshua Raymond, the CEO of XTB UK.
How ETN Works?
Exchange-traded
notes (ETNs) are debt securities that are designed to track the performance of
an underlying asset or index. They have gained popularity among investors
looking for easy access and tax advantages. But how exactly do they work?
ETNs are
issued by financial institutions like banks. When investing in an ETN, you
essentially lend money to the issuing bank. In return, the bank promises to pay
you back the principal plus or minus any changes in the value of the index or
asset that the ETN tracks.
ETNs
function similarly to ETFs in that they trade on exchanges like stocks. One
major advantage of ETNs is the tax treatment. Unlike funds that distribute
dividends, ETN investors defer all taxes until sale or maturity. At that point,
profits are taxed as long-term capital gains. This can mean significant tax
savings.
However,
they carry more risk as they are unsecured debt instruments. If the issuer goes
bankrupt, investors may lose their investment.
XTB Reports 2023 Numbers
and Presents 2024 Roadmap
XTB has
unveiled its preliminary financial results for 2023, showcasing a remarkable
51% increase in active clients, totaling 311,971. Despite market volatility and
inflationary pressures, the company achieved a 3% year-over-year (YoY) growth
in net profit, amounting to PLN 791.3 million.
The revenue
also saw a significant uptick, with a 10% YoY increase to PLN 1,588.2 million,
attributed to the increased volatility in financial and commodity markets and a
substantial growth in its customer base.
In addition
to its financial achievements, XTB has announced its product roadmap for 2024.
This roadmap signifies the company’s evolving focus towards passive
investments, social trading, and the advanced application of AI technology,
moving beyond its roots in the FX/CFD industry.
Among the
notable initiatives is the plan to expand its fixed-income offerings, making
bond investments more accessible through a mechanism akin to fractional shares.
Starting from investments as low as EUR 10, XTB will offer a diversified
portfolio that includes a mix of government and corporate bonds, prioritizing
high ESG ratings and secure ratings between AAA to BBB.
As
expected, the introduction of Bitcoin ETFs has spurred another wave of demand
for cryptocurrencies. However, European traders can’t invest directly in these increasingly popular instruments.
To solve
this issue, the Polish brokerage firm XTB (WSE: XTB) has just offered an alternative to
these instruments, announcing the addition of three new exchange-traded
products (ETPs). This move gives investors more ways to gain exposure to the digital
assets.
The new
products include two exchange-traded notes (ETNs) focused solely on Bitcoin and
one ETN based on a mix of the ten most popular cryptocurrencies. They come amid
growing investor demand for crypto assets as new Bitcoin ETFs launch in the US.
“We
are regularly answering investors’ questions about when they can start
investing in Bitcoin ETFs in Europe,” said Filip Kaczmarzyk, the Member of
the XTB Management Board. “While we don’t know the answer, we wanted to
find an alternative given the interest in crypto.”
Starting
from this week, XTB’s offering will include three new ETNs:
- BTCetc
Bitcoin Exchange Traded Crypto, - VanEck
Bitcoin ETN, - VanEck
Crypto Leaders ETN.
XTB said it
decided to add ETNs given their long-standing availability in Europe. Over the
years, leading brokers have used them to give clients access to hard-to-reach
assets.
Filip Kaczmarzyk, XTB
“Until
now, XTB offered the possibility of investing in cryptocurrencies only through
CFD contracts,” Kaczmarzyk added. “However, seeing the demand from
investors, we decided to find an alternative for those who are looking for
similar opportunities that American ETFs offer.”
For XTB,
this is another new feature in their offering after the fintech announced at
the beginning of the month that it wants to enter the UK’s £400 billion
Individual Savings Accounts (ISAs) market. Finance Magnates discussed ISAs with
Joshua Raymond, the CEO of XTB UK.
How ETN Works?
Exchange-traded
notes (ETNs) are debt securities that are designed to track the performance of
an underlying asset or index. They have gained popularity among investors
looking for easy access and tax advantages. But how exactly do they work?
ETNs are
issued by financial institutions like banks. When investing in an ETN, you
essentially lend money to the issuing bank. In return, the bank promises to pay
you back the principal plus or minus any changes in the value of the index or
asset that the ETN tracks.
ETNs
function similarly to ETFs in that they trade on exchanges like stocks. One
major advantage of ETNs is the tax treatment. Unlike funds that distribute
dividends, ETN investors defer all taxes until sale or maturity. At that point,
profits are taxed as long-term capital gains. This can mean significant tax
savings.
However,
they carry more risk as they are unsecured debt instruments. If the issuer goes
bankrupt, investors may lose their investment.
XTB Reports 2023 Numbers
and Presents 2024 Roadmap
XTB has
unveiled its preliminary financial results for 2023, showcasing a remarkable
51% increase in active clients, totaling 311,971. Despite market volatility and
inflationary pressures, the company achieved a 3% year-over-year (YoY) growth
in net profit, amounting to PLN 791.3 million.
The revenue
also saw a significant uptick, with a 10% YoY increase to PLN 1,588.2 million,
attributed to the increased volatility in financial and commodity markets and a
substantial growth in its customer base.
In addition
to its financial achievements, XTB has announced its product roadmap for 2024.
This roadmap signifies the company’s evolving focus towards passive
investments, social trading, and the advanced application of AI technology,
moving beyond its roots in the FX/CFD industry.
Among the
notable initiatives is the plan to expand its fixed-income offerings, making
bond investments more accessible through a mechanism akin to fractional shares.
Starting from investments as low as EUR 10, XTB will offer a diversified
portfolio that includes a mix of government and corporate bonds, prioritizing
high ESG ratings and secure ratings between AAA to BBB.
