Hedge Fund Global Advisors Acquires European Bitcoin ETN Provider

Jun 14 2016 | 6:01pm ET

Digital currency hedge fund Global Advisors has acquired XBT Provider, home to two bitcoin-based exchange-traded notes (ETNs), allowing for trading to resume following the bankruptcy filing of the firm’s former majority shareholder and guarantor.

Trading in the two ETNs was halted in May following the demise of KnC Group, a digital currency mining operation that raised more than $30 million in venture funding before filing for bankruptcy protection earlier this year. KnC was a 72% owner of XBT Provider and backstopped the firm’s two ETN offerings, named Bitcoin Tracker One and Bitcoin Tracker EUR.

The two securities are listed on the NASDAQ Nordic exchange in Stockholm and are designed to mirror the return of bitcoin denominated in U.S. dollar or euro, respectively. They represent two of the few exchange-traded ways to engage in bitcoin. 

Following the acquisition, NASDAQ has approved Global Advisors as XBT Provider’s new guarantor, and the firm has become a Global Advisors subsidiary.

“Acquiring control of XBT Group is a unique opportunity to increment our strategy of creating access to bitcoin as an asset class,” said Daniel Masters, co-founder and CIO of Global Advisors, in a statement. 

“XBT’s products offer one-click, delta-one exposure to bitcoin via a wide range of electronic trading platforms,” he added. “We look forward to sharing with XBT the benefits our best-practices and experience managing the Global Advisors Bitcoin Investment Fund.”

Jersey-based Global Advisors and its predecessor companies have provided professional asset management in commodities since establishment in 1999. The company currently focuses on bitcoin investment products and blockchain technology companies. Its composite bitcoin trading portfolio returned more than 37% in 2015, according to its website, and is down -5.93% for the year to date through May 31.

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