Reports said that the Middle East, one of the world’s fastest-growing crypto markets, has offered a new opportunity for direct investment in Bitcoin through the 21Shares Bitcoin ETP.
It has been reported that the new 21Shares Bitcoin ETP has started trading on the international financial exchange Nasdaq Dubai under the ticker ABTC, the firm announced on October 12.
Hany Rashwan, the co-founder and CEO of 21Shares, said that the newly launched crypto product is physically backed, which means that it’s fully collateralized by the underlying Bitcoin assets they track with 1:1 leverage.
However, he noted that the ETP’s underlying crypto assets are deposited in an offline wallet to ensure better security. 21Shares’ expansion into the UAE is a major milestone in the company’s international growth. Including Nasdaq Dubai, 21Shares’ ETPs are listed across 12 exchanges, including SIX Swiss Exchange, Deutsche Börse, EuroNext, BXSwiss, Wiener Börse, Quotrix, Gettex, Börse Stuttgart, Börse München, Börse Düsseldorf and Nasdaq.
The report said that according to Rashwan, Germany and Switzerland are currently the two of the biggest markets for 21Shares’ crypto ETPs in Europe.
Rashwan said:
“In terms of MENA, we expect strong interest given the crypto-friendly nature of the region.”
Likewise, the CEO also mentioned that the MENA region has become a hub for crypto companies and major exchanges like FTX, Kraken, and Blockchain.com, attracting even more investors following India’s decision to tax crypto earnings at 30%.
Rashwan added:
“The Middle East’s level of interest and crypto-friendliness made it a prime market for expansion for 21Shares.”
21Shares is not the only firm that has listed crypto investment products on Nasdaq Dubai. Last year, Canadian investment fund manager 3iQ listed a Bitcoin ETP on Nasdaq Dubai as well. The product is trading under the ticker QBTC and offers indirect exposure to Bitcoin.
He added:
“The 3iQ Bitcoin Fund is not physically-backed.”
Thus, the news comes soon after 21.co, the new parent firm of 21Shares, appointed Sherif El-Haddad as head of the MENA in August. The former head of asset management at Dubai-based Al Mal Asset Management, El-Haddad previously attempted to launch a physically-backed crypto exchange-traded fund at Al Mal, but his proposal was not approved.
Source: Cointelegraph