Iconic Funds, a global crypto asset management firm, today announced it will issue an Exchange Traded Note (ETN) for bitcoin of up to 100,000,000 Notes, tracking the NYSE Bitcoin Index (NYXBT).
The Notes may be subscribed to by qualified investors with both EUR and BTC, with a minimum subscription size of 100,000 Notes and an issue price of €1,00 per Note. Iconic Funds will apply for admission to trading of the Notes on the regulated market of the Luxembourg and Frankfurt Stock Exchanges in Q4 2019. The Notes will have a German ISIN.
The Issuer will hold bitcoin (BTC) and store them with institutional-grade custodians, such as Coinbase Custody, in order to meet its payment obligations under the ETN. The ETN will be available for trade to retail and institutional investors. The ETN does not have a fixed maturity date, however, the Issuer has the option to call the ETN and investors have the option to put the ETN on a quarterly basis. Iconic will charge a 0.5% quarterly management fee for its services managing the ETN.
“Financial Institutions and large investors have been clamoring for a seamless way to invest into bitcoin and other crypto-assets for many years and, thus far, they have not had an institutional-grade product through which to do s. While the SEC continually rejects bitcoin ETP proposals in the U.S., Iconic has developed such investment product in Europe and are excited to offer the first on regulated markets such as the LuxSE and FSE. We look forward to expanding our portfolio of structured products for crypto assets in the near future and have many new issuances planned on the horizon for leading crypto assets.”
– Patrick Lowry, CEO and Managing Partner of Iconic
Structure
Structured as a traditional ETN, the investment product removes the technical complications of investing in and holding bitcoin for investors. White & Case LLP acted as the Issuer’s counsel, with Iconic’s General Counsel, Liquet Associates, facilitating the entire process.
Baader Bank (ISIN: DE0005088108) serves as the Settlement, Listing, Paying and Calculation Agent for the ETN, with WSB as the tax advisor. Deloitte performed the initial audit of Iconic’s issuing entity.
Iconic is perpetually at the forefront of crypto-asset adoption, and has been investing in the space since 2017 and issuing the EU’s first fully-licensed crypto asset index fund earlier in 2019.
NYXBT
The NYSE Bitcoin Index aims to represent the value of (1) bitcoin in U.S. Dollars (USD) as of 4 PM U.K. time each weekday. The Index is calculated sourcing data from qualified exchanges, currently GDAX and itBit. Only bitcoin transactions conducted in USD are eligible to be input into the Index.