London-based ETC Group is set to list the first Bitcoin exchange-traded product (ETP) on Germany’s Börse Xetra digital stock exchange this month.
It will launch after it receives approval from German financial regulators BaFin.
And as well as Germany, traders in the UK, Italy and Austria will also be able to deal in shares of the new ETP product.
Bitcoin ETP (BTCE) on Germany’s Börse Xetra Digital Stock Exchange
According to the press release, the ETP, called Bitcoin Exchange Traded Crypto (BTCE), will be physically backed 100% with Bitcoin and stored with the custodian BitGo.
The German financial markets regulator BaFin approved the Bitcoin-backed ETP in March, and will become the first Bitcoin investment product listed on the German exchange.
Speaking of the launch, ETCGroup CEO, Bradley Duke said, ‘BTCE brings the transparency and investor protection that regulators and institutional investors require to the world of Bitcoin.’
‘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.’
ETCGroup has sought the help of HANetf to market and distribute the product. HANetf is a white-label ETF issuance platform and is well known for issuing cloud computing and medical cannabis ETFs on European exchanges.
‘Yet again HANetf is acting as a force for innovation, demonstrating the power of our white label ETF model to break down the barriers to entry to this market,’ said HANetf co-CEO Hector McNeil.
‘Investors truly want value-added products and HANetf’s unique multi-manager platform delivers this – as the launch of BTCE proves.’
Not Quite an ETF But Still Promising
Regulatory approval for an ETF is still a distance away, even in Europe where it seems to be more accepting of Bitcoin products.
And although we might not see a Bitcoin ETF this year, Bitcoin ETPs are gaining the attention of the mainstream European investors.
Swiss fintech company, Amun AG, a crypto investment instrument provider, previously listed a Bitcoin inverse exchange-traded product (ETP) on Swiss stock exchange SIX.
This is the latest addition to its already burgeoning crypto portfolio, which included 11 products that are tied to digital assets, including Bitcoin, Etherum, and even Binance Coin.
Is Germany Becoming The Crypto Hotbed?
Germany’s financial markets regulator BaFin has been in the news a lot in recent months. Back in December it announced it was lifting regulatory constraints that had previously prohibited German banks from offering Bitcoin-related services to clients.
And then in March, The Hamburg-based Distributed Ledger Consultancy DLC proposed a digital assets custodianship, in what will become Germany’s first cryptocurrency exchange.
And then a month later, German regulators approved a reverse ICO (rICO), which is an evolution of the ICO, introduced as a way to bring on-chain investor protections.
Conclusion
Germany has been easing up on its crypto regulations of late, and this should be reflected throughout Europe.
We are seeing new products that allow traders to buy Bitcoin related prodcuts through their stock brokers.
It might not be an ETF, but ETC Group’s ETP (BTCE) will be backed by physical Bitcoin – a bullish sign as more BTC will be taken off the market.
When ETF? Who knows, but it’s edging closer and who’d bet against Germany being the first to launch one?
Author: Pablo Clarke
