The world’s first centrally cleared Bitcoin Exchange Traded Product(ETP) will be listed on Deutsche Börse’s XETRA platform before July by the ETC Group. The Bitcoin Exchange Traded Product will track Bitcoin’s price movements and is fully backed by physical Bitcoins. It will be listed on the XETRA platform with the ticker BTCE.
The ETP will provide investors an opportunity to buy and sell BTCE same way they would when trading normal shares or Exchange Traded Products(ETPs) in a regulated market with regulatory protections like CCP clearing in place. Clearing through a CCP reduces the counterparty risk when trading on a regulated exchange and BTCE will bring this important feature to Bitcoin and Cryptocurrency trading for the first time.
The Bitcoin ETP was approved by Bafin, the German financial regulator in March 2020. Bafin confirmed that they now officially view cryptocurrencies as financial instruments that can be traded. The product is fully backed by physical Bitcoin stored in a regulated institutional grade safe custody where each unit of BTCE gives the holder a predefined amount of Bitcoin (0.001 BTC approximately $10) to either claim in cash or Bitcoin.
Bradley Duke had this to say about the world’s Bitcoin Exchange Traded Product:
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. Alongside the issuing of the exchange traded cryptocurrency, we are also very pleased to partner with HANetf to help us to democratise crypto investing through greater content and education.
BTCE will be traded on one of Europe’s biggest exchanges and institutional grade Market Makers have been appointed to provide on-exchange liquidity with tight spreads. BTCE is backed by a number of major London based financial institutions headed by ETC Group. Also BTCE is partnering with HANetf to provide marketing services and educational content for the product via their white label ETF issuance business.
Hector McNeil, co-Founder and co-CEO at HANetf, said:
We are very excited to work with Bradley and his team at ETC Group. 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. Investors truly want value added products and HANetf’s unique multi manager platform delivers this – as the launch of BTCE proves.