Bitcoin Investment

Unique Zero-Fiat ‘Bitcoin Bond’ Debuts on Bloomberg Terminal

Eustace Cryptus | Jul 04, 2019 | 23:55

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The range of Bitcoin investment options for institutional and retail investors continues to expand as two European companies debut a zero-fiat Bitcoin Bond on Bloomberg Terminal.

This one is for the HODL Crowd

A recently published press release shows that the London Block Exchange (LBX) and Argento have partnered to develop a zero-fiat bond which is denominated in Bitcoin. The UK and Luxembourg-based companies proudly proclaimed that the product is the first ever Bitcoin Bond in existence and according to Argento manager Phil Millo, “The large investment banks really dropped the ball on this one.” 

What makes the bond unique is that it is the first regulated cryptocurrency financial product with a dedicated ISIN code and the bond offers zero fiat exposure to investors. Accessible via the Bloomberg Terminal, the product is specifically targeted toward long investors and LBX CEO Benjamin Davies describes the bond being the most suitable for Bitcoin investors looking to grow their long-term Bitcoin wallets in an institutional grade environment where their holdings are not exposed to traditional currency market fluctuations. 

Institutional Grade Crypto Products Gain Ground Everywhere Except the U.S.

The bond is regulated by the United Kingdom’s Financial Conduct Authority (FCA) and Argento has cleverly titled the various bond durations ‘FOMO’, ‘HODL’, and ‘MOON’, each of which is a standard crypto-oriented acronym commonly used by members of the cryptocurrency community.  

Keen investors will note that while the FCA has been stringent in regulated crypto-based financial products and putting a stop to crypto scams, the approval of the zero-fiat bond eclipsed Bakkt’s thrice-delayed debut. Institutional grade crypto-investment products are steadily racking up approvals worldwide as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) continue to drag their feet in approving institutional grade crypto-products like Bakkt’s Bitcoin exchange and the long-awaited Bitcoin-based Exchange Traded Fund (ETF). 

Another recent setback to note is Binance’s announcement that US-based users would be barred from using the exchange starting in September as a number of the digital assets listed on the exchange cannot be legally offered to U.S.-based investors. Binance CEO Changpeng Zhao explained that the company intends to launch a regulatory-compliant version of  Binance through its partner BAM but exact details of the exchange and its launch date have yet to be released.  

Do you think investors will rush into this new zero fiat Bitcoin Bond? Share your thoughts in the comments below! 

Images via Shutterstock, Coveware.com