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Centrally Cleared Bitcoin Now Trading on XETRA in Historic 1st as New Analysis Shows Strong Performance of the Cryptocurrency Against Major Indices

  • BTCE becomes first Bitcoin exchange traded cryptocurrency to trade on XETRA’s central order book
  • Physical Bitcoin exposure, exchange traded, and the first crypto ETP to be centrally counterparty cleared globally [1] 
  • BTCE to be passported to Italy, UK and Austria. Other markets to follow
  • Price of Bitcoin has increased significantly more than the DAX 30, S&P 500 and FTSE 100 over three years, five years and seven years [2]
  • Bitcoin ‘halved’ in May, and research [2] reveals increase in price of cryptocurrency following previous ‘halvings’   

 

18th June 2020 - ETC Group and HANetf confirm that BTCetc - BitcoinExchange Traded Crypto (BTCE) has today listed on XETRA in a ground-breaking debut. This is the first cryptocurrency product to launch on XETRA, the inaugural product from ETC Group and the first cryptocurrency ETC to be available on HANetf’s white label exchange traded product (ETP) platform.

Approved by BaFin, BTCE is an exchange traded cryptocurrency (ETC) that tracks the price of Bitcoin.  The ETC is 100% physically backed by Bitcoin and for every unit of BTCE, there is Bitcoin stored in regulated, institutional-grade custody. BTCE is also the first centrally cleared cryptocurrency ETP to be issued.  

BTCE gives investors several benefits over investing directly in Bitcoin. As it is traded on regulated markets, investors can buy and sell it in the same way they would when trading conventional shares or ETPs, with the identical regulatory protections in place. Investors do not 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. Central counterparty clearing through Deutsche Boerse’s Eurex Clearing service removes bilateral counterparty risk. Central counterparty clearing doesn’t exist in underlying Bitcoin trading and is the first time an ETP will be cleared in this way globally.

Bradley Duke, CEO of ETC Group said: “The launch of BTCE on XETRA is a significant milestone for the cryptocurrency community and investors alike. With BTCE, we are bringing Bitcoin into the fold of mainstream, regulated financial markets, giving investors the benefits of trading and owning Bitcoin through a regulated security. while having the optionality of redeeming physical Bitcoin if they choose.” 

Michel Krogmann, Board Member of the Frankfurt Stock Exchange said: “With the new product, investors can easily participate in the performance of the Bitcoin price without having to use unregulated crypto-trading platforms. Separate infrastructure, such as a crypto wallet, is not required."

He further commented: “With the world's first centrally cleared Bitcoin ETC, we are also setting new standards for in the post-trade processing of products on crypto-currencies."

Investors can 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 has also been passported to the UK, Italy and Austria.  As with all exchange traded products, an investor’s capital is at risk.

Strong long-term performance of Bitcoin

New analysis2 from HANetf and ETC Group reveals that over the past year, three years, five years and seven years, the price of Bitcoin has increased by 9%, 318%, 3,891% and 7,113% respectively.  The corresponding figures for the DAX 30 for example, are -3%, -10%, 0% and 36%.

All returns in USD

Bitcoin

FTSE 100

 

S&P 500

Dax 30

Gold

1y

9%

-14%

 

12%

-3%

35%

3y

318%

-12%

 

34%

-10%

35%

5Y

3891%

-14%

 

60%

0%

43%

7y

7113%

-2%

 

116%

36%

24%

Source: HANetf and ETC Group: Data up to 29th May 2020. 

Bitcoin is a volatile financial instrument.  Past performance is no guarantee of future performance. When you trade Bitcoin your capital is at risk.

In addition to this, in May Bitcoin halved for only the third time in its history and analysis reveals the price of Bitcoin increased by 931% six months after it first did this on 28th November 2012, and by 8,345% and 4,465% 12 months and 18 months later.  The corresponding figures for the second time the cryptocurrency halved (9th July 2016) are 36%, 261% and 2,103% respectively.    

Bitcoin halving is when the reward for mining new blocks is halved, which means miners receive 50% less of the cryptocurrency for verifying transactions. Bitcoin halvings happen once every 210,000 blocks until the maximum supply of 21 million bitcoins has been released. The halving process is relevant for traders because it reduces the number of new bitcoins being generated by the network and if demand remains high, which has happened in the months before and after previous halvings, the price of the cryptocurrency can rise.

BTCE Product Information:

Name

BTCetc - Bitcoin Exchange Traded Crypto - (BTCE)

Primary Ticker

BTCE

Denomination

1 BTCE = 0.001 Bitcoin (less fees)

Asset backed

100% backed by Bitcoin

Custody

BitGo Trust Company

Redemption

Bitcoin or cash

Total Expense Ratio (TER)

2.00% per annum

Listing

Deutsche Börse XETRA

 

ETC’s are a highly volatile digital asset and performance is unpredictable.  Past performance is not a reliable indicator of future performance. The price of the ETC may vary and does not offer a fixed income. The value of any investment may be affected by exchange rate and underlying price movements.

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