STOCKHOLM, MARCH 9, 2018 -- Since the Bitcoin Cash fork of 1 August, we have witnessed several Bitcoin forks and one Ethereum fork.
Forks, which represent a split (whether backwards compatible or not) in the codebase, present a new challenge to the Bitcoin and larger crypto community. As such, they can be complex and confusing to investors who are learning about Bitcoin or Ethereum for the first time. The article available here provides information as to why forks exist.
For the Issuer, the event of a fork is particularly challenging for the following reasons:
- The Issuer must determine access to the forked coin. Not all forks are acknowledged by exchanges or by the custodians that the Issuer uses for storage of crypto assets.
- Not all forks are considered "legitimate" and some are considered by the wider community to be dishonest schemes.
- Many forks may have untested and/or unstable technology that is not capable of facilitating a proper transaction.
In accordance with the Prospectus, the Issuer has no legal obligation to distribute forked coins to certificate holders; however, it wishes to return the value creation to shareholders where possible. Accordingly, the Issuer has decided to develop a forking distribution plan that will operate as follows:
- Forks eligible for the plan will be selected according to the available information of each separate fork, at the Issuer's discretion.
- 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.
Each distribution will take place in March and September of each year (commencing in September 2018) and will incorporate the previous 6 months of forking activity. Forks occurring immediately before the corporate action date may need to be included in the next period's distribution due to lack of liquidity or acknowledgement from exchanges/custodians (or other reasons mentioned above).
For the avoidance of doubt, the Issuer does not guarantee that a particular fork, or proceeds resulting from a particular fork, will be included in any distribution; inclusion is solely at the discretion of the Issuer based on the criteria outlined above.
The 'Bitcoin Cash fork' distribution will be handled separately to the above-mentioned forks and is scheduled for March 2018. All other forks, subject always to the Issuer's discretion, since the date of the Bitcoin Cash fork will be incorporated into the bi-annual distribution schedule.
For all other questions, please email: [email protected]
ABOUT THE ISSUER
XBT Provider AB (Publ), a CoinShares company, is the Swedish-domiciled issuer of Bitcoin Tracker One and Bitcoin Tracker Euro (COINXBT:SS, COINXBE:SS, respectively) and Ether Tracker One and Ether Tracker Euro (COINETH:SS and COINETHE:SS). These Exchange Traded Products are designed to mirror the return of the underlying asset, bitcoin (in Swedish Kronor and Euro, respectively). In 2015, Bitcoin Tracker One became the first bitcoin-referenced security available on a regulated exchange when it listed on NASDAQ in Stockholm. In 2017, Ether Tracker One became the first ether-referenced security available on a regulated exchange when it listed on NASDAQ in Stockholm. All four certificates are available in 179 countries and are traded in the same manner as any other share or instrument listed on the Nasdaq exchange in Stockholm. The Issuer's Prospectus is approved by the Swedish FSA (Finansinspektionen) and its products are listed on Nasdaq Nordic in Stockholm. XBT Provider AB (Publ) is not a licensed financial advisor. The views presented in this release are the opinions of the Board of XBT Provider AB (Publ) 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. Prospective investors in the Issuer's certificates should carefully consider the suitability of such an investment and, in connection with such a determination, should carefully read the Issuer's latest Prospectus (including, in particular, the risk warnings set out therein). For More Information regarding XBT Provider, contact us at: XBT Provider AB (Publ) [email protected] or visit our website at: www.XBTProvider.com