Crypto Currencies

Bitcoin & Certificate - an interesting symbiosis

23/07/2019 | 2 min read
Bitcoin-Aug18_Header

Vontobel now offers investors access to the crypto currency «Bitcoin» via a tracker certificate. The certificate is listed on the stock exchange and enables investors to participate easily and transparently in the price development of Bitcoin.

For many investors, the market for crypto currencies has been an interesting and novel investment alternative for years. Vontobel was the first issuer of tracker certificates on Bitcoin in Denmark to make the simple and transparent investment in popular crypto currencies accessible to all investors. With the tracker certificate on the crypto currency «Bitcoin», investors in Denmark are offered a further alternative to participate in the development of the crypto currency market.

Tracker certificate on Bitcoin: How it works

With the Vontobel tracker certificate, investors participate in the price development of Bitcoin without having to have access to the Bitcoin network or a Bitcoin wallet themselves. Accordingly, investors do not bear the risk of losing Bitcoin through hacker attacks, technical problems, improper handling or the failure of the Bitcoin depositary. However, as with most tracker certificates offered, investors bear the risk of the issuer's insolvency in addition to the market price risk of the underlying asset and the currency risk (Bitcoin is determined in USD while the certificate is denominated in DKK).

Product details

Vontobel is now offering the tracker certificate on Bitcoin with no maturity date - a so-called tracker certificate open-end (Symbol: TRACK BITCOIN VONT, ISIN: DE000VF5Y339). The product enables unlimited* participation of almost 1:1 in price gains and losses of the BTC. The well-known virtual marketplaces Coin Base, Kraken Bitcoin Exchange and Bitstamp serve as «reference agents» for the tracker certificate in the crypto currency «Bitcoin» in US dollars. The first trading day of the new Open End Certificate on the stock exchange was on Wednesday, 29 May 2019. From this date, investors are able to trade the certificate in the secondary market via their bank or broker and purchase or sell it at the respective bid/ask price.

Information about the underlying

The now legendary white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” by a certain Satoshi Nakamoto created a big stir on the Internet back in February 2009.  It marked the birth of the cryptocurrency bitcoin, which embodies the idea of an independent payment system.  
A blog article posted by Nakamoto attracted considerable attention. In it he wrote: “The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. (…) With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.” (Source: http://p2pfoundation.ning.com, 11.02.2009).

The term ‘Bitcoin’ refers to an internet currency whose monetary units are created and managed decentralized on a computer network. Bitcoin users who are connected with each other via the internet can transfer bitcoins to one another electronically. Bitcoins only exist virtually on a computer network and have no physical equivalent. Bitcoins are traded in a completely decentralized way on the internet and do not have to be processed via intermediaries of any kind (e.g. countries, central / commercial banks).

In order to make it easier for investors and interested parties to enter the Bitcoin universe, a special series on the functioning, background and development possibilities of Bitcoin will be published in the coming weeks.

*The term is basically unlimited, subject to termination by the issuer or exercise by the investor.

The products are not capitalprotected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.

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Please read this information before continuing, as products and services contained on this website are not accessible to certain persons. Of importance are the respective prospectuses which are attainable from the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, DE-60323 Frankfurt am Main, Germany, as well as from this website.