XBT Provider AB – Forking Policy In Light of Upcoming Ethereum Forking Event

STOCKHOLM, JAN 4, 2019 — XBT Provider AB (Publ) (the “Issuer”) is conscious of the fact that there are currently a number of potential, ‘forking-related’ events which may occur on the Ethereum blockchain in the next 14 days. These events may affect the native asset, ether; the asset which two of XBT Issuer’s products track (Ether Tracker One and Ether Tracker Euro (collectively the “Certificates”)).

The Issuer wishes to clarify that its Certificates are designed to track “ether” and not any alternative coin which results from a forking event and shared a common transaction history prior to the fork. Therefore, in the case of a fork, the Certificates will be referenced to the coin which the Ethereum community and exchanges define, and consider to be, “ether.” (As the holder of ether, the group companies of the Guarantor will be entitled to hold both coins resulting from any fork).

The Issuer wishes to emphasise from its earlier Press Releases concerning the phenomenon of 'forking’ that:

  • forks are not an uncommon occurrence;
  • the circumstances, technical construction and ideology represented by each fork are unique;
  • the prevailing market-conditions at the time of, and following, each fork are unique;
  • the relative significance of each fork varies;
  • it is possible that a particular fork may result in a significant disruption to the underlying asset and, potentially, may result in a market disruption event should pricing become problematic following the fork; and
  • it is not possible to predict with accuracy the impact which any anticipated fork could have or for how long any resulting disruption may exist.

If Ethereum were to experience a significant fork or forks in the coming weeks, the Issuer wishes to reiterate that it will follow its established process, as initially described in the March 9, 2018 release found here and summarized below.

In accordance with the Prospectus, the Issuer has no legal obligation to distribute forked coins to Certificate holders; however, the Issuer wishes to return the value creation to Certificate holders where possible. Accordingly, the Issuer’s forking distribution plan operates as follows:

  1. Forks eligible for the plan will be selected according to the available information of each separate fork, at the Issuer's discretion.
  2. The proceeds of any eligible forks will be distributed to Certificate holders bi-annually.
  3. Critically, the Issuer will provide a corporate action date, in which Certificate holders in possession of the Certificates (as of the corporate action date) will be eligible to receive a cash distribution accumulated by forks during the preceding half-year period.
  4. Only owners of Certificates, by Euroclear definition, will be paid and they will distribute to their underlying clients, sometimes multiple levels.
  5. Once owners of Certificates are paid, the Issuer no longer has any responsibility for the good execution of any onward or further distribution.

For further details on the Issuer’s forking policy, please consult the forking policy update release here or contact us at: info@xbtprovider.com .


About XBT Provider AB (Publ)

XBT Provider AB (Publ) (XBT Provider), a CoinShares company, is the Swedish-domiciled issuer of the Bitcoin Tracker One (COINXBT:SS), Bitcoin Tracker Euro (COINXBE:SS), Ether Tracker One (COINETH:SS) and Ether Tracker Euro (COINETHE:SS) series of 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 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 and traded in the same manner as any other share or instrument listed on the Nasdaq exchange in Stockholm.

XBT Provider’s Prospectus is approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) and its 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 Issuer’s 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 the Issuer’s latest Prospectus (including, in particular, the risk warnings set out therein). XBT Provider’s 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 XBT Provider’s 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 XBT’s certificates will not be the same as the returns which a direct investment of an equivalent sum in the relevant underlying asset could produce. XBT Provider’s certificates are non-equity linked, non-principal protected, unsecured and unsubordinated and do not bear interest.