Team behind $1 billion Bitcoin ETP to list the first Litecoin ETP on Deutsche Börse’s XETRA
- ETC Group is set to list the ETC Group
Physical Litecoin ETC (Ticker: ELTC) in April, the
first Litecoin exchange traded product (ETP) to be listed on the Deutsche Borse
- New launch follows the huge success of ETC Group’s first
product BTCetc -ETC Group Physical Bitcoin, which listed on Deutsche Börse’s XETRA in June 2020 has amassed over $1 billion in AUM and the launch of the ETC Group Physical Ethereum ETC, the first Ethereum exchange traded product in March
2021
- The new Physical Litecoin ETC will be a central
counterparty cleared exchange traded product and will track the price of the
Litecoin cryptocurrency, with the security,
safety, and liquidity of trading on regulated markets
- The Litecoin, Bitcoin and Ethereum products by ETC Group
are distributed on the HANetf platform alongside its existing range of
innovative ETFs and ETPs
ETC Group,
the specialist provider of innovative, digital asset-backed securities, has
announced that it will list LTCetc – ETC Group Physical
Litecoin ETC (Ticker: ELTC) on Deutsche Börse’s XETRA platform on Wednesday
14thApril2021. The exchange traded cryptocurrency is structured as an
asset-backed debt security issued in Germany, and is marketed and distributed
by HANetf.
ETC Group´s Physical Litecoin ETC (Ticker: LITE) will track the price of
Litecoin providing investors with an institutional grade product gain exposure
to the Litecoin cryptocurrency. ELTC is the first Litecoin product to be listed
on Xetra and will be central counterparty cleared[1].
The launch follows the huge success of ETC Group’s first
product - BTCetc Bitcoin Exchange Traded Crypto (ticker
BTCE) – launched on XETRA last June, which has seen
its assets under management grow to over $1 billion in just seven months[2]. BTCE had a turnover of 925million
EUR on Xetra in February with a market share of 79.4% of the ETN segment of
Xetra and was the most traded ETP across the whole of Xetra[3].
It’s the
third crypto ETC from ETP Group – earlier this month it listed ETC Group Physical Ethereum ETC (Ticker: ZETH) which tracks
the price of Ether and was the first Ethereum ETP to be listed on the Deutsche
Borse. ZETH traded over $1million in its first week of launch[4]
and had spreads of just 23 basis points.[5]
This
growing range of crypto ETCs provides investors with several benefits over
investing directly in the cryptocurrencies they track. Traded on regulated
markets, investors can buy and sell the ETCs in the same way
they would when trading conventional shares, with the identical regulatory
protections in place. ELTC will be central counterparty cleared (CCP). The
first time Lite Coin will be central counterparty cleared globally. Central
counterparty clearing, is absent in underlying crypto currency markets, but is
a feature that investors expect when trading an ETP on a regulated exchange, as
it greatly reduces counterparty risk when trading. ELTC has a management fee of
2%.
Bradley
Duke, CEO of ETC Group said: “Litecoin has grown
by 342%[6] in
the past 12 months and
is the nineth largest cryptocurrency by market capitalisation at $14.6 billion[7]
with growing interest from institutional and retail investors. It’s often
talked about as the silver to Bitcoin’s gold.
“The
current economic uncertainty has underlined the attraction of crypto assets for
investors as they offer opportunities for diversification from traditional
assets such as equities and bonds, and strong hedging qualities against
inflation. But it is a crowded market with more than 8,700 cryptocurrencies[8],
making it difficult for investors to select assets and to store and manage
them.
“Our
physically backed Bitcoin ETC (BTCE) was designed to provide investors with a safer and more
transparent way to gain exposure to Bitcoin and we are now able to offer the
same benefits to Litecoin with the listing of ETC Group Physical Litecoin
ETC in
addition to the ETC Group Physical Ethereum
ETC ,which launched earlier this month.
“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.
“Traditional
markets will remain volatile for some time, fuelling demand for alternatives
such as cryptocurrencies. In contrast to previous rallies in cryptocurrencies,
the current one is the first to be supported by both retail and institutional
investors, making this the ideal time to launch ELTC.”
Past
performance is no guarantee of future performance. Cryptocurrencies
are highly volatile, and your capital is at risk.
Hector
McNeil, co-Founder and co-CEO at HANetf, said “We are excited to be
supporting the ongoing expansion at ETC Group and the launch of their third
crypto ETC with the listing of ETC Group Physical Litecoin ETC. ETC Group is
firmly established as a market leader in offering investment products focused
on crypto assets. The huge success of their first product, BTCE, which reached over
$1 billion in assets in just over seven months since listing3
demonstrates the growing demand for products which enable investors to avoid
concerns about the technical challenge of buying and storing cryptocurrencies.
ETPs are listed on a regulated Exchange and investors buy them through
regulated brokerages. This is arguably the most robust way to trade and invest
in crypto currencies.”
Visit the ETC Group Physical Litecoin ETC fund page