The second-largest German exchange Tradegate has implemented KNC’s XBT Provider ETN, the first regulated Bitcoin exchange-traded note.

The move sees Germany overtake the pioneering Swedish market to become the largest worldwide, where both small- and large-scale investors can bet on the Bitcoin price via an ETN. BitcoinCommodities CEO Dennis Daiber told local news resource

“As soon as an ETN is created somewhere in the world, theoretically it can be introduced on any German exchange — there just has to be the demand from someone.”

Demand for ETN from the Swedish Nasdaq has been brisk since its introduction on May 18, with activity on some days topping 2000 BTC. Enough, supposes, for Tradegate to consider its implementation into the traditionally Bitcoin-conservative German market. Daiber explained:

“[With ETNs,] millions of small-scale investors who have hitherto been following Bitcoin's development with a mixture of suspicion and fascination can get involved with this new currency.”

BitcoinCommodities CEO Dennis Daiber

- BitcoinCommodities CEO Dennis Daiber

Germany has sent mixed signals regarding the freedom of investors to partake in Bitcoin activity. Both private holders and businesses alike have felt the strain from regulatory uncertainty in recent months, which has led to the shutdown of Localbitcoins and the denial of banking by national bank Sparkasse, among other issues.

With the success of Munich-based Fidor Bank’s regulated Bitcoin trading tools, however, the atmosphere appears to be changing. Fidor is expanding internationally, having launched in the UK and attempting to infiltrate the competitive U.S. market.