Trading in bitcoin made simpler through new exchange

May 18, 2015, 10:12 AM

STOCKHOLM (AP) — Investors can for the first time bet on the value of bitcoins through an established stock exchange after Nasdaq launched an index based on the cybercurrency in Stockholm, Sweden.

Monday’s launch of a bitcoin-based security on the Stockholm Stock Exchange allows investors to speculate on bitcoin’s value without actually owning the cybercurrency. It makes it easier to trade on the currency’s value without having to go through websites and online exchanges that may or may not be safe.

Here are some questions and answers on the system.

___

What is a bitcoin?

Bitcoins are a virtual currency that can be used to buy and sell some goods and services without government-issued money. They also allow people to conduct transactions anonymously, making it difficult to regulate and opening up the possibility of operating unlicensed bitcoin exchanges. The cybercurrency is created by computers that are used to resolve complex algorithmic formulas.

___

How does this new index work?

A financial firm called XBT Provider got approval last month from Swedish regulators to offer shares for Bitcoin Tracker One, a certificate whose value is based on the price of bitcoins on world markets.

The value of these shares is based on 0.5 percent of the global value of a bitcoin as traded on major online bitcoin exchanges.

The shares’ price opened Monday at 9.69 kronor ($1.18) and closed at 9.73 kronor, with more than 1.8 million shares traded on the first day.

XBT Provider spokesman Johan Wattenstrom said the company wants to make it “extremely accessible” to invest in bitcoins.

___

Why buy bitcoin shares?

Investors are able to speculate on the value of bitcoins without actually buying the virtual currency, providing an easy and secure way to invest in bitcoins outside the volatile spot exchanges and shady websites.

It gives an alternative to traditional investors who believe the value of the bitcoin will increase but don’t want to hold the currency.

XBT Provider CEO Alexander Marsh says the company hopes to have “eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe to be the future of money.”

___

Who can buy bitcoin shares?

The shares can be bought by anyone through a bank or broker registered with the Nasdaq Stockholm exchange.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Business

FILE-- Gas is advertised for more than $6 per gallon at a gas station in Sacramento, Calif., Friday...
Associated Press

California lawmakers to vote on $307.9 billion spending plan

SACRAMENTO, Calif. (AP) — California lawmakers on Wednesday will vote on a plan to spend $308 billion in taxpayer money over the next year as the coffers of the world’s fifth largest economy continue to swell during the pandemic. The centerpiece of the operating budget crafted by Democratic Gov. Gavin Newsom and legislative leaders is […]
12 hours ago
FILE - President Joe Biden speaks during the Major Economies Forum on Energy and Climate in the Sou...
Associated Press

Most say nation on wrong track, including Dems: AP-NORC poll

WASHINGTON (AP) — An overwhelming and growing majority of Americans say the U.S. is heading in the wrong direction, including nearly 8 in 10 Democrats, according to a new poll that finds deep pessimism about the economy plaguing President Joe Biden. Eighty-five percent of U.S. adults say the country is on the wrong track, and […]
12 hours ago
Lev Parnas, a former associate of Rudy Giuliani, arrives at the federal courthouse with his wife Sv...
Associated Press

Giuliani’s former Ukraine fixer gets 20 months in prison

NEW YORK (AP) — Lev Parnas, an associate of Rudy Giuliani who was a figure in President Donald Trump’s first impeachment investigation, was sentenced Wednesday to a year and eight months in prison for fraud and campaign finance crimes. Parnas, 50, had sought leniency on the grounds that he’d cooperated with the Congressional probe of […]
12 hours ago
This Feb. 26, 2021, file photo shows an oil well east of Casper, Wyo. The Biden administration is r...
Associated Press

Biden administration holding its first onshore oil sales

BILLINGS, Mont. (AP) — The U.S. government this week is holding its first onshore oil and gas drilling lease auctions since President Joe Biden took office after a federal court blocked the administration’s attempt to suspend such sales because of climate change worries. The online auctions start Wednesday and conclude Thursday. About 200 square miles […]
12 hours ago
FLE - A line of Spirit Airlines jets sit on the tarmac at the Orlando International Airport on May ...
Associated Press

Merger vote at Spirit could reshape discount airline market

DALLAS (AP) — The prospect of a takeover of Spirit Airlines threatens to upend the cheap-fare end of the industry much like a series of mergers among big airlines reduced choices for travelers. Spirit is the largest budget airline in the United States, but its days as a stand-alone company appear numbered. The big question […]
12 hours ago
...
Sponsored Content by Arizona Department of Health Services

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.

Sponsored Articles

...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
...
Day & Night Air

Tips to lower your energy bill in the Arizona heat

Does your summer electric bill make you groan? Are you looking for effective ways to reduce your bill?
Trading in bitcoin made simpler through new exchange