A few more detail on the more "institutional money relevant" aspects of this product.
There is a nice read about this ETP from a traditional ETF news outlet:
ETC Group to debut with bitcoin ETP on XetraThe ETP is the first centrally cleared bitcoin product. This is significant, potentially opening the door to institutional investors which are typically prevented from trading non-centrally-cleared instruments – a restriction that presently precludes direct transactions in bitcoin itself or in any of the other bitcoin ETPs that are currently available. Clearing through a central counterpart (CCP) system, as opposed to the bilateral settlement, reduces the counterpart risk that market participants are exposed to.
First of all: what does it means centrally cleared?
When you buy this product, you are not buying from the issuer, but from the German Stock Exchange, who in his turn, buys it from the issuer. So the exchange is acting like a clearing counterpart, who "untie" the credit relations between the two original counterparts, who are not facing themselves directly but are only facing the exchange.
This means that if the issuer defaults, you are not facing a defaulted entity, but the central clearing counterpart (CCP) who is kept liquid.
To sum up, the investors can actually get exposure tho this product neglecting counterpart risk, as the only counterpart they are facing is the German Xetra, which is one of the lowest risk counterparts in the world.
Also, another interesting piece of information I could, discover elsewhere:
It is also the first ETP to give holders of shares a claim on a predefined amount of bitcoin which they are entitled to redeem in bitcoin if they so wish – albeit with a fee of $2,500 if redeeming in bitcoin for an amount that is less than $250,000. Each share corresponds to 1/1000th of a bitcoin.
So you are free to reclaim your physical bitcoin, but not really incentive to do so. Probably it is just a fail-safe mechanism to get hold of your possession in case there is a problem.
If an investor wants to get long exposure to physical bitcoin I would think about BAKKT 1 day futures, for example, just to name something very closely related to legacy exchanges.