ETC Group is launching a bitcoin cash exchanged-traded product (ETP) on the Deutsche Boerse via white-label ETF issuer HANetf.
Physically-backed, the ETC Group Physical Bitcoin Cash ETP (BTCH) will launch on 21 September with a total expense ratio (TER) of 1.95%.
Trading bitcoin through an ETP structure removes the technical challenges associated with cryptocurrency such as setting up a wallet or trading or unregulated exchanges.
The ETP was established in response to growing investor demand from institutional investors, while listing in Germany allows investors to access to “some of the most crypto friendly tax laws in mainland Europe”.
Bitcoin cash is a fork of the original bitcoin but has since picked up global merchant adoption as a cross-border payment tool that delivers “cheap and fast transactions” with the “security and transparency” of blockchain.
Last year, bitcoin cash was selected by payment services PayPal and Venmo.
Bradley Duke, CEO of ETC Group, said: “We expect BTCH to prove popular with professional investors who want a cleaner, simpler and more secure way to gain exposure to the booming investment universe of digital assets.”
In March, 21Shares launched the world’s first centrally cleared ethereum and bitcoin cash ETPs, the 21Shares Ethereum ETP (21XE) and 21Shares Bitcoin Cash ETP (21XC) on the Frankfurt Stock Exchange.
ETC Group currently has three other crypto ETPs, the BTCetc Bitcoin Exchange Traded Cryptocurrency (BTCE), the ETC Group Physical Ethereum ETP (ZETH) and the ETC Group Litecoin ETC (ELTC), Europe’s second litecoin ETP to launch.