Bitcoin Cash Spoils XBT Provider ABs Plans for a Crypto ETP

Bitcoin Cash Spoils XBT Provider ABs Plans for a Crypto ETP

XBT Provider AB planned on launching an exchange-traded product (ETP) in the form of a cryptocurrency basket last year but backed out because one of those cryptocurrencies spoiled the party. Can you guess which one?

As suggested by a report from Bloomberg, XBT CEO Laurent Kssis didnt have a clue about the potential for a Bitcoin Cash (BCH) hard fork which happened late last year despite getting the green light from Swedish regulators to launch a cryptocurrency ETP. He told theprivately held financial, software, data, and media company:

Its important to ask how the community is responding to the split and whos going to support one asset versus the other. If we get it wrong, these assets will drop and if theyre part of the basket we cant go back because its in the final term-sheet.

Though Kssis never explicitly mentions Bitcoin Cash as the culprit, one can put two and two together. The altcoin experienced a high-profile ideological split in Q4 2018 when the community took sides between Bitcoin Cash Satoshis Vision (SV) and Bitcoin Cash ABC.

The confusion was largely blamed for pushing the price of Bitcoin (BTC) down below yearly support in dramatic fashion though one might argue that it was heading down anyway.


Commenting on XBTs retraction of the ETP, Bloomberg strategist Mike McGlone stated:

Hard forks are indicative of some of the primary issues in cryptos pressuring prices. The overall issue is rapidly increasing crypto supply and negative signals for potential institutional investors of how still nascent the market is.

In even simpler terms, McGlones statement could be interpreted as one which claims investors outside of the cryptocurrency industry have no idea why there are so many Bitcoins in the first place.

Its not an easy task to explain to someone how Bitcoin Cash was originally created because some people in the community thought it was more in line with Satoshi Nakamotos real vision for peer-to-peer electronic cash, but then that sub-community had an apparent disagreement over what Satoshi Nakamotos real vision for peer-to-peer electronic cash actually was and that one of those people actually claims he is (or was) Satoshi Nakamoto.

At the end of the day, if you dont know enough about cryptocurrencies to know that Bitcoin Cash might hardfork at an all-but-planned date, you probably shouldnt be offering it in a basket of digital assets to institutional investors.

What do you think about XBTs putting the breaks on its cryptocurrency ETP? Let us know your thoughts in the comments below!

Images courtesy of Shutterstock.

The post Bitcoin Cash Spoils XBT Provider ABs Plans for a Crypto ETP appeared first on Bitcoinist.com.

13.02.2019 / 23:05 80
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