Copy link
Increase text size
Decrease text size
Link copied

Deutsche Borse Lists New Bitcoin Exchange-Traded Product

A new bitcoin-backed ETF will soon be launched in Germany.

QuoteInspector.com / Flickr

Wed, 10 Jun 2020, 11:22 am UTC

German investors will soon have one more crypto-asset option to take into consideration. The ETC Group, an investment firm based in London, recently announced plans to list a bitcoin exchange-traded product on a German bourse later within this month.

In an announcement made on Tuesday, ETC Group said that it would soon launch a bitcoin-backed security called the Bitcoin Exchange Traded Crypto (BTCE). The product will be listed later this month on Frankfurt’s Deutsche Borse’s Xetra market.

Once launched, BTCE will also become the world’s first centrally cleared derivative crypto asset. European derivatives market use central clearing to firm up an asset’s stability because of a financial institution taking on a counterparty credit risk.

Being backed by bitcoin, ETC said that each BTCE holder has a claim to a specific amount of the token, although the exact amount was not yet revealed at the moment. To company also said that the actual bitcoin will be secured by storing the tokens in a cold vault in BitGo, a firm located in Palo Alto, California.

The product is projected to cost slightly higher than traditional ETFs as it will have an expense ratio of 2 percent rather than the usual 0.5 to 0.7 percent. “Bringing a product like this into regulated markets is not an easy task, and this is reflected in the premium,” ETC explained.

ETC Group CEO Bradley Duke highlighted one of the advantages of the product is that its flexibility. “Investors get the benefit of trading and owning bitcoin through a regulated security, while having the option to redeem bitcoin if they choose,” Duke said in a statement.

“It really is a hybrid ETP product that has the same features as an ETF [exchange-traded product],” the ETC Group CEO explained further. “Because it’s a single asset instrument it doesn’t qualify to be an ETF according to the European fund regime.”

BTCE will be distributed on the HANetf platform and will be available in Germany. However, the company added that it has also been passported to Austria, Italy, and the UK so users from these countries will be able to trade on the bitcoin-backed security as well.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.06.13 01:43:16
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door inbox me for more info....contact me on whatsapp :+12067425358 happy new year to you all ..............................
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $9,207.43 (-0.78%)
  • Ethereum (ETH) $239.08 (-1.73%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $229.54 (-2.86%)
  • Bitcoin SV (BSV) $180.52 (-1.88%)
  • Bitcoin (BTC) $9,207.43 (-0.78%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft