3 min readSeptember 14, 2022 | STOCKHOLM, Sweden - XBT Provider AB (Publ) ( the "Issuer") has today announced details of the potential effects of Ethereum’s upcoming merge on two of its ether-based securities.
The affected securities are listed below:
Ether Tracker One
Nasdaq Ticker: ETHEREUM XBT
Bloomberg Ticker: COINETH:SS
ISIN: SE0010296574
Ether Tracker Euro
Nasdaq Ticker: ETHEREUM XBTE
Bloomberg Ticker: COINETHE:SS
ISIN: SE0010296582
The Issuer has been closely following the developments in the Ethereum protocol, with respect to both the proposed move (the “Merge”) to a Proof of Stake consensus network (the “ETHPoS”) as well as the proposed fork (the “Fork”) of the existing Proof of Work consensus network (the “ETHPoW”). As a result of the Fork, the Issuer understands that a new Digital Currency (“ETHW”) will be created and distributed pro rata to all holders of the existing Ether Digital Currency (ETH).
Although the Issuer, in accordance with the Prospectus, has no legal obligation to distribute forked coins to certificate holders, it nevertheless seeks to return the value creation to Certificate Holders where possible. Accordingly, the Issuer has developed the following (long-standing) policy on forks:
Forks eligible for the plan will be selected according to the available information of each separate fork, at the Issuer's discretion, with a focus on the viability and value of the new token.
The forks will be distributed to certificate holders bi-annually.
Critically, the Issuer will provide a corporate action date, in which certificate holders in possession of the certificates (as at the corporate action date) will be eligible to receive a cash distribution accumulated by forks during the preceding half-year period.
Only owners of certificate by Euroclear definition will be paid and they will distribute to their underlying clients, sometimes multiple levels.
Once owners are paid, the responsibility is no longer within the firm for good execution.
The Issuer will announce a corporate action date three (3) weeks in advance of each bi-annual fork distribution.
The corporate action date is designed to allow the Issuer to capture a snapshot of the registered certificate holders at the point of the corporate action. These certificate holders will be eligible to receive proceeds the Issuer has collected during the preceding 6 months.
The Issuer notes that the market for ETHW may experience significant price volatility during the Merge and that the new protocol for ETHW may experience risks associated with the stability of the technology underpinning the protocol as well as risks to the adoption of ETHW among exchanges and custodians. The Issuer will endeavour to sell ETHW and distribute the proceeds to Certificate Holders in the event the proceeds are material and the protocol is stable, but the Issuer can make no guarantees as to its ability to do this.
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About XBT Provider
XBT Provider AB (Publ) (“XBT Provider”), a CoinShares company, is the Swedish-domiciled issuer of the Bitcoin Tracker One (SE0007126024), Bitcoin Tracker Euro (SE0007525332), Ether Tracker One (SE0010296574), Ether Tracker Euro (SE0010296582), series of certificates (collectively, the “Certificates”) which are designed to synthetically track the performance of the price of the relevant underlying crypto-asset, bitcoin or ether, (in Swedish Kronor or Euro, respectively), less a fee component.
In 2015, Bitcoin Tracker One became the first bitcoin-referenced security available on a regulated exchange when it listed on Nasdaq Stockholm. In 2017, Ether Tracker One became the first ether-referenced security available on a regulated exchange when it listed on Nasdaq Stockholm. The Certificates are available and traded in the same manner as any other share or instrument listed on their respective exchanges.
XBT Provider’s Prospectus is approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) and the Certificates are governed by Swedish law. XBT Provider is not a licensed financial advisor. The views presented in this release are the opinions of the Board of XBT Provider and no other party. Bitcoin and ether, are volatile assets and their prices (and the price of securities that are referenced to them) can move quickly, positively or negatively. Prospective investors in the Certificates should carefully consider the suitability of such an investment and whether they have sufficient financial resources in order to be able to bear the risks associated therewith and, in connection with such a determination, should carefully read XBT Provider’s latest Prospectus (including, in particular, the risk warnings set out therein). The Certificates do not confer on the holders thereof any claim to or against the relevant underlying crypto-asset to which they are referenced. The value and any payment due under the Certificates will be affected by the exchange rate between the US Dollar and the Euro or, as the case may be, between the US Dollar and the Swedish Kronor. Any returns upon the Certificates will not be the same as the returns which a direct investment of an equivalent sum in the relevant underlying crypto-asset could produce. The Certificates are non-equity linked, non-principal protected, unsecured and unsubordinated and do not bear interest.
