The Bulgarian Stock Exchange (BSE) has enabled crypto trading on its platform. The development comes after the market cap of the crypto sector touched $3 trillion (roughly Rs. 22,334 crore) last year, indicting the raging success of the overall industry. The BSE has launched eight exchange-traded notes (ETNs) based on Bitcoin and Ethereum for traders to try out its crypto trading feature. The BSE was founded in 1995 as the only functioning stock exchange in the country, its website notes.
“With BSE International crypto ETNs, investors are not committed to creating own crypto wallets or cryptographic keys, while receiving guarantees that the instruments they choose are systematically regulated and regulatory compliant,” Manyu Moravenov, the executive director of BSE said in a statement.
An alternative to cryptocurrencies, ETN is a debt security that tracks the underlaying index of security, but its prices fluctuate like stock rates. ETNs are like bonds, that do not require interest payments, a report by Investopedia explains.
“The investors looking for suitable innovative crypto products may now freely trade in eight crypto ETNs offering for the first time in our country an alternative to the traditional cryptocurrencies,” the official confirmation from BSE read.
:new:Bulgarians can now trade in crypto instruments on the BSE
:bell:The Exchange launched today eight crypto ETNs on Bitcoin and Ethereum
:credit_card:To trade in the new instruments, investors don’t have to create their crypto wallets or cryptographic keys
⏭Read more⤵https://t.co/C9Ge5BTh3L pic.twitter.com/jM0Jx7eb9j
— Bulgarian Stock Exchange (@BulgarianStock) February 17, 2022
An ETN promises to pay at maturity, the full value of the index, minus the management fee. Like any other debt security, the investor is subject to the credit risk of the bank issuer, Boston, US-based finance firm Fidelity Investments has elaborated on the working of ETNs.
Germany’s trade market-organising company Deutsche Börse, along with Berlin-based financial services provider Tradegate AG will be working with the BSE to ensure the liquidity of these listed crypto instruments.
Earlier in January, Assen Vassilev, the finance minister of Bulgaria had reportedly revealed that the country was exploring ways to integrate crypto payment mechanisms in its financial systems.
Previously, European exchanges such as Deutsche Börse and Euronext have also launched ETN trading on their platforms.
The New York Stock Exchange (NYSE) has also filed for licences to allow crypto trading on its platform.
NYSE is also planning to develop a virtual marketplace to sell digital collectibles called NFTs or non-fungible tokens.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.