Bulgarians may now invest in crypto assets on the stock exchange in their home country. Taking a cue from key European platforms offering such products, the Bulgarian Stock Exchange recently released eight ETNs based on two digital currencies, bitcoin and Ethereum.
Crypto-based ETNs For Bulgarian Investors
The Bulgarian Stock Exchange (BSE) has begun trading cryptocurrency products based on Bitcoin (BTC) and Ethereum prices (ETH). According to a statement issued last Thursday, “investors seeking suitable new crypto products may now freely trade in eight crypto exchange-traded notes (ETNs).”
A premium, unsecured, unsubordinated debt product issued by an underwriting bank is known as an exchange-traded note. ETNs, like other debt instruments, have a maturity date and are only secured by the issuer’s credit. Investors can buy ETNs to gain access to the returns of various market benchmarks.
The BSE underlined in a news statement that the Bulgarian stock market is following in the footsteps of major European exchanges such as Deutsche Börse and Euronext, which launched similar products two years ago.
BSE Executive Director Prof. Dr. Manyu Moravenov commenting on the development, said, “We are addressing the rising market interest in crypto instruments with BSE International’s new offerings. We’re excited to be able to provide an alternate asset for exchanging cryptocurrencies today, making the process smoother and more straightforward for all interested parties.”
According to Moravenov, the ETNs would allow investors to invest in digital assets without having to establish or hold crypto wallets or cryptographic keys. They will also have access to regulation-compliant crypto instruments, according to the CEO.
The trading of crypto-based ETNs is part of BSE’s long-standing relationship with Deutsche Börse and market maker Tradegate AG, according to the Bulgarian stock exchange. The statement claimed that this will assure the liquidity of the crypto products. The items are exchanged in euros during regular trading hours, according to BSE.
Bulgarian Finance Minister Asen Vasilev recently told Bloomberg that the Southeast European country, which is a member of the European Union, is investigating solutions to produce cryptocurrency transfers easier.
According to Vasilev, who is also deputy prime minister, a cryptocurrency payment system might be established “in the near to medium term.” He went on to say that the executive branch in Sofia is communicating to the Bulgarian National Bank and members from the country’s crypto business about the concern.
