Hopefully, they won't drag XBT Provider ETNs down with them. If this comes to pass, the loss of investor confidence in all future bitcoin-pegged assets may be devastating...
So far, they claim that all the ETN funds were fully hedged, but who knows:
http://xbtprovider.com/lang_en/newsWasn't the main downer regarding ETN's the fact that they depended on the health of the guarantor? ETFs don't which is why they're so much harder to create. I assume this has happened plenty of times in investmentland.