ETC Group is set to list the first cryptocurrency exchange-traded product (ETP) on Xetra via white label platform HANetf.
The BTCetc Bitcoin Exchange Traded Cryptocurrency (BTCE) is set to launch on Xetra later this month after receiving approval from BaFin, the German financial regulator.
Physically-backed, BTCE tracks the price of bitcoin and has a total expense ratio (TER) of 2%.
Trading bitcoin through an ETP structure removes the technical challenges associated with cryptocurrency such as setting up a wallet or trading or unregulated exchanges.
It also removes the need to manage cryptographic keys or engage with blockchain technology.
The launch comes after BaFin announced on 2 March it is officially recognising cryptocurrencies as financial instruments.
Bradley Duke, CEO of ETC Group, commented: “The crypto sector has been held back by concerns about complexity, accessibility and governance.
“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.”
There are a number of ETF issuers that offer bitcoin ETPs including WisdomTree which launched a bitcoin ETP on the SIX Swiss Exchange last December. Specialist crypto ETP issuers 21Shares, formely known as Amun, and CoinShares also offer ranges.
BTCE will be passported to the UK, Italy and Austria.
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