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.