London-based ETC Group will list a Bitcoin ETP on Germany’s Xetra digital stock exchange by later this month.
Traders in the following countries will also be able to deal in shares of the new product:
United Kingdom
Italy
Austria
On June 9 ETC Group announced that Bitcoin Exchange Traded Crypto, or BTCE, an exchange-traded product, will launch on Deutsche Börse Xetra after it receives approval from the German financial regulators.
The ETC team today announced that the first physically-backed Bitcoin, BTCE, will launch on @Xetra! A big day for #digitalassets #financialservices #cryptocurrencies https://t.co/cBJg7Znhc6 — BitGo (@BitGo) June 10, 2020
BTCE tracks the price of Bitcoin (BTC) and is physically backed by the cryptocurrency.
Moreover, the Bitcoin will be held in cold storage by digital asset custodian BitGo.
ETC Group CEO Bradley Duke said:
“The crypto sector has been held back by concerns about complexity, accessibility and governance. With BTCE, we are transporting Bitcoin into the fold of mainstream, regulated financial markets. Investors get the benefits of trading and owning Bitcoin through a regulated security while having the optionality of redeeming Bitcoin if they choose.”
The group will be offering BTC trading “through an ETP structure”. Although, it is not quite the same as having an exchange-traded fund.
The hybrid ETP doesn’t meet the precise definition of an ETF in the European Union, as it’s a single asset instrument.
Source: Cointelegraph | Image: Pixabay
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