Competition in the crypto space is hotting up after ETC Group joined 21Shares in launching a centrally cleared ethereum exchange-traded product (ETP) on Deutsche Boerse.
The issuers made the announcement just days apart with both ETPs set to begin trading on 9 March, the first strategies to offer an ethereum ETP that is central counterparty cleared.
The ETC Group Physical Ethereum ETP (ZETH) will list on the Deutsche Boerse via white-label issuer HANetf with a total expense ratio (TER) of 1.49%.
ZETH will offer exposure to the price of ethereum while central clearance offers advantages such as standardisation, risk reduction and operational efficiency.
The launch comes after the success of the BTCetc Bitcoin Exchange Traded Cryptocurrency (BTCE) which has gathered $1bn assets under management (AUM) since coming to market in June 2020.
Commenting on the launch, Bradley Duke, CEO at ETC Group, said: “We have worked really hard to engineer BTCE to offer investors a way to gain exposure to bitcoin and we are now able to offer the same benefits to ethereum with the listing of ZETH.
“Institutional investors are demanding regulated crypto products that are secure, liquid and central counterparty cleared and ETC Group is building products that adhere to the complex and exacting standards of the institutional investor.
“The last 6 months have been pivotal for digital assets. The coronavirus crisis helped illustrate the many benefits of these assets, and their attractiveness to investors. They offer great diversification from traditional assets such as equities and bonds, and strong hedging qualities against inflation.”