Digital assets group Eqonex has launched its investment product business with the unveiling of a bitcoin exchange-traded note (ETN).
The Eqonex BTC Tracker (EQ1B) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.89%.
EQ1B is physically backed by bitcoin with an initial ratio of 0.001% of bitcoin per note and is currently only available to investors residing in Germany.
Digivault will provide custody services for EQ1B with investors able to redeem their bitcoin for free.
According to Eqonex, the physical bitcoin will be held in a segregated account under a security trustee to eliminate collateral risk.
The issuer said EQ1B was the first of a “pipeline” of crypto investment and structured products set for launch in the second half of 2022.
Frank Copplestone, head of investment products at Eqonex, said: “The launch of our investment product business is an important milestone for the company as we dedicate more attention and focus towards delivering a broader mix of investment opportunities to our clients across Germany and in time, to other international markets.
“Investors are looking for a range of ways to access digital asset investment opportunities, so we are excited to offer a product to German investors that provide direct bitcoin exposure, and is available on a regulated, globally recognised exchange.”
Jonathan Farnell, CEO of Eqonex, added: “Germany makes an ideal, strategic launchpad for our investment products business, given its sophisticated and highly educated investment community.
“We see the German market as fertile ground for what is likely to be a growing suite of Eqonext ETPs.”
The ETN is the latest in a long line of crypto products launched in recent months. Last month, 21Shares launched the world’s cheapest physically-backed bitcoin ETP, 21Shares Bitcoin Core ETP (CBTC), as part of its new crypto winter range designed to help investors weather the bear market.
Earlier this month, Jacobi Asset Management announced it would be launching Europe’s first bitcoin ETF – Jacobi Bitcoin ETF (BCOIN) – after receiving regulatory approval from the Guernsey Financial Services Commission (GFSC) in October 2021.
Bitcoin is currently down 57.4% year to date and last month briefly dipped below a significant price milestone of $20,000, its lowest point for 18 months.