World’s First Centrally Cleared Bitcoin Exchange Traded Product to list on Deutsche Börse
- BTCetc - Bitcoin ExchangeTraded Crypto - (BTCE) becomes the world's first centrally cleared (CCP) Bitcoin exchange traded prodict to list on Deutsche Börse’s XETRA
- BTCE delivers physical Bitcoin exposure with the security, safety, and
liquidity of an exchange traded product
- BTCE will trade on the main order book on XETRA and will be central counterparty
- BTCE will be distributed on the HANetf platform alongside its existing
range of innovative ETFs & ETPs
9th June 2020 - ETC Group will
world’s first centrally cleared Bitcoin ETC ,
BTCetc Bitcoin Exchange Traded Crypto - (BTCE) on
Deutsche Börse’s XETRA platform later this month. The exchange traded cryptocurrency (ETC)
tracks the price of Bitcoin and is 100% physically backed, providing investors
with a safe and transparent way to gain exposure to Bitcoin.
This is the
first cryptocurrency product to launch on XETRA, the inaugural Exchange Traded
Product (ETP) from ETC Group and the first cryptocurrency ETC to be available
on HANetf’s white label ETP platform.
gives investors several benefits over investing directly in Bitcoin. Traded on
regulated markets, investors can buy and sell the ETC in the same way they
would when trading conventional shares or ETPs, with the identical regulatory
protections in place. CCP clearing is a feature that investors expect when trading on a
regulated exchange and BTCE brings this standard to Bitcoin and cryptocurrency
trading for the first time. Clearing through a CCP greatly reduces the
counterparty risk when trading BTCE.
BaFin, the German financial regulator, BTCE is structured as an ETC that is
physically backed by Bitcoin. Each unit of BTCE gives the holder a claim on a predefined
amount of Bitcoin - a structure very similar to physically-backed gold exchange
traded commodities, and allows investors the option for redemption in Bitcoin. For every unit of BTCE, there is Bitcoin
stored in regulated, institutional-grade safe custody. The entire ETC structure
is based on a transparent and verifiable process to ensure that the provenance
of all Bitcoin in custody has been strictly vetted.
need to engage with the technical challenges of purchasing and storing Bitcoin
such as setting up a cryptocurrency wallet or trading on unregulated crypto exchanges
and there is no need to manage cryptographic keys or engage with blockchain
technology. Units of BTCE are safely held with an investor’s securities broker
or bank, thus removing the risk of losing the investment because of, for
instance, lack of knowledge of how cryptographic keys work.
BTCE is traded
on one of Europe’s largest exchanges and is supported by a network of world class Authorised
Participants (APs) and Market Makers, experienced in cryptocurrency markets as
well as the ETP markets. The APs ensure on-exchange liquidity and tight
spreads, enabling traders to purchase in all sizes without having to worry
about market impact.
Trading will be
centralised on XETRA, drawing liquidity from the many fragmented crypto
exchanges. ETPs are at their most powerful when they democratise access to difficult-to-access
asset classes. The Bitcoin ETP that can harness global liquidity in a robust
and tried and tested product structure.
On March 2nd
2020, BaFin, the German Regulator confirmed that they now officially recognise
cryptocurrencies as financial instruments, a significant step in the official recognition
of the important role that cryptocurrencies have been playing in global markets
in recent times.
a number of major London-based financial institutions, ETC Group brings together financial services professionals,
with experience spanning both the worlds of digital assets and regulated
markets with the
goal to become the bridge between crypto and regulated markets, thus making investing in cryptocurrencies
easier, safer and transparent.
BTCE will be distributed
and marketed via HANetf’s unique white label ETF issuance business. HANetf is a
fast growing, young business set up by ETF industry veterans. In its short time
in existence, HANetf has issued Europe’s first cloud computing ETF and medical
cannabis ETF. These unique offerings are clear evidence of the value-added
nature of the ETPs HANetf helps set up, manage and distributes. BTCE will be an
excellent addition to the stable of ETFs and ETPs HANetf already offers.
Duke, CEO of ETC Group said: “BTCE brings
the transparency and investor protection that regulators and institutional
investors require to the world of Bitcoin. 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. 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.”
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.”
purchase BTCE through their regular broker or bank with access to XETRA, and
individuals or institutions wanting to exchange their Bitcoin holdings directly
for the product can do so via the network of Authorised Participants of the
Issuer. BTCE will also be passported to
the UK, Italy and Austria. As with all exchange traded products, an investor’s
capital is at risk.
ETC Group & HANetf will be
hosting a webinar on “Exchange Traded Bitcoin: Why Invest?” on June 24th
2020. Register here.
About ETC Group
is founded by a team of experienced financial services professionals and
entrepreneurs. Shareholders include XTX Ventures, the venture capital arm of
electronic market-making firm XTX Markets, and financial services firm ITI
Exchange Traded Crypto - (BTCE)
||1 BTCE = 0.001 Bitcoin (less fees) approx. €X
||100% backed by Bitcoin
||BitGo Trust Company
||Investors can redeem for Bitcoin or cash
|Total Expense Ratio
||2.00% per annum