Topic: [2020-06-09] German Stock Exchange lists Bitcoin-backed ETC (Read 524 times)
We will promote the inclusion of ETFs in Shenzhen Hong Kong stock connect. At the 2020 Caixin summer Summit on June 22, the chief executive of the Hong Kong Special Administrative Region of the people's Republic of China, Lin zhengyue'e, said that in the coming year, the SAR government will promote ETFs to be included in policies such as Shenzhen Hong Kong stock connect. People may actually see its advantages in the financial industry.
However ETCs are way different compared to what the institutional investors really want which is ETFs. ETCs are paired up with commodities and unlike ETFs which are paired up with futures contracts which if you look at the market now both isn't doing so well in terms of giving their investors any kind of earnings.
the differences are somewhat trivial for investors. an ETF would directly invest in BTC or futures. an ETC would issue notes underwritten by a bank which are physically collateralized by BTC or futures. both would probably track the underlying reasonably well (assuming an open issuance/redemption system) and carry similar fees.
as far as wall street goes, lower risk and larger institutions probably want exchange traded securities based in the USA and regulated by the SEC. that's why a swedish ETN or german ETC isn't necessarily a game changer, but it does show the gradually shifting investment atmosphere. and since notes are fully collateralized (unlike an ETN) it should mean adoption of the ETC will have a net bullish effect on price.
However ETCs are way different compared to what the institutional investors really want which is ETFs. ETCs are paired up with commodities and unlike ETFs which are paired up with futures contracts which if you look at the market now both isn't doing so well in terms of giving their investors any kind of earnings. I can see why Bitcoin has easily passed being available as an ETC because it is considered as a "commodity" even if it is a digital asset. Now that Bitcoin is actually part of a exchange traded platform people might actually see it's advantages in the financial industry.
Germany is getting to be an important market for Bitcoin and with this news above it can mean that there is really a growing interest with Bitcoin in that economically rich leading country in Europe. Germany has a better economy in the Eurozone and it can be playing a good role in the adoption of cryptocurrency most especially BTC. That listing in German stock exchange should be a good news to the whole global cryptocurrency community.
The website is in German, but what I've seen is:
Since Bakkt started operating these news are not that important anymore, still, I like it and thought I'd share.
Original source (German) : https://www.btc-echo.de/btc-kommt-an-die-boerse-xetra-listet-bitcoin-exchange-traded-crypto-btce/
- they've listed this BTCE on Xetra of Die Börse
- it's not an ETF, it's an ETC and it writes that:
it is physically secured. This means that it will be fully deposited with Bitcoin (BTC), where 1 BTCE corresponds to 0.001 Bitcoin (BTC).
Since Bakkt started operating these news are not that important anymore, still, I like it and thought I'd share.
Original source (German) : https://www.btc-echo.de/btc-kommt-an-die-boerse-xetra-listet-bitcoin-exchange-traded-crypto-btce/
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