Bitcoin counterattacks banks! Swiss Vontobel Bank issues Bitcoin tracking certificate to trade Bitcoin indirectly

Swiss global bank and financial institution Vontobel has launched a new product that allows its users to trade Bitcoin indirectly. This product is a financial instrument similar to a shared certificate pegged to the value of Bitcoin. Ordinary investors can use this certificate on the stock market.

Banks have recently changed their attitude towards Bitcoin. Last week, Citibank released a Bitcoin research report (full report download), which believes that Bitcoin is not a threat to banks, but an opportunity.

It has been more than five years since Bitcoin became a popular alternative tradable financial asset. The digital currency is widely traded on various Bitcoin and cryptocurrency exchanges around the world. Regular Bitcoin traders usually trade Bitcoin for cash or other digital currencies. Until now, Bitcoin trading activities have always run parallel to traditional trading, with little crossover.

The certificate, which is linked to Bitcoin, will be issued on July 15. The first batch of certificates issued by Vontobel Bank will be approved for trading on the Swiss Exchange and will be valid for two years. Secondary market investors can also use this certificate for trading.

These certificates, also known as tracker certificate certificates, are worth the same as the underlying asset, which is Bitcoin. When the price of Bitcoin fluctuates, the value of these certificates will also fluctuate with the Bitcoin trading market. In this way, investors will be able to tap into the benefits of Bitcoin trading and profit from the volatility of this digital currency through traditional stock market channels.

There are no clear regulations for bitcoin trading, and Vontobel's bitcoin tracking certificates are one of the few ways bitcoin can be traded in traditional markets. Although the actual value of the certificates is equivalent to bitcoin, it may be different in the secondary market.

Whether such certificates will be successful is another matter, as it will be much easier and faster to trade Bitcoin directly through a cryptocurrency exchange than to trade such Bitcoin tracking certificates. It is worth noting that anyone can trade Bitcoin with other digital currencies or fiat currencies simply by signing up with a Bitcoin exchange after completing simple AML (anti-money laundering regulations) and KYC (know your customer) requirements. But in order to be able to trade these tracking certificates, traders may have to complete additional formalities.

By the end of this month, the future of this Bitcoin tracking certificate will become clearer. In the near future, some stock traders who participate in this tracking certificate may also jump to mainstream Bitcoin trading.