ETC Group to launch bitcoin ETP on Deutsche Boerse - page 5.

fillippone

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Quote from: Upgrade00 on June 09, 2020, 07:24:07 AM

This could encourage their investors to learn about the technical aspects of holding and securing bitcoins, if there is an opportunity to redeem them

True,
but this is important also for institutional investors. Many of them simply cannot "touch" bitcoin, even if they are willing to.
It's too complicated from a legal, fiscal and compliance point of view. It might also be outside their trading mandate.
This kind of problem solves a lot of issue for them.
Major loser: Grayscale, who won't be anymore able to sell their shares at an inflated premium to institutional desperate to get long Bitcoin.

Upgrade00

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It is a welcome news. The impact of ETF on the cryptocurrency market would be huge. The U.S Securities and Exchange Commission (SEC) has been delaying it's approval, but other countries have been adopting cryptocurrency and putting policies in place to support it's growth.

Quote from: fillippone on June 09, 2020, 06:56:31 AM

One interesting aspect is the possibility to redeem the physical bitcoin:

This could encourage their investors to learn about the technical aspects of holding and securing bitcoins, if there is an opportunity to redeem them

I just tried to access the updated link - (https://www.hanetf.com/article/409/worlds-first-centrally-cleared-bitcoin-exchange-traded-product-to-list-on-deutsche-brse) but couldn't, is it only accessible to specific regions?

fillippone

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Bitcoin Exchange-traded products are arriving in Germany's Xetra.
This will give to German, Austrian Italian and UK investors the ability to get price exposure to Bitcoin, with the possibility to eventually redeem their own Bitcoin.

ETC Group to launch bitcoin ETP on Deutsche Boerse via HANetf

Quote

ETC Group is set to list the first cryptocurrency exchange-traded product (ETP) on Xetra via white-label platform HANetf.

The BTCetc Bitcoin Exchange Traded Crypto (BTCE) is set to launch on Xetra later this month after receiving approval from BaFin, the German financial regulator.

Physically-backed, BTCE tracks the price of bitcoin and has a total expense ratio (TER) of 2%.

Trading bitcoin through an ETP structure removes the technical challenges associated with cryptocurrencies such as setting up a wallet or trading or unregulated exchanges.

It also removes the need to manage cryptographic keys or engage with blockchain technology.

One interesting aspect is the possibility to redeem the physical bitcoin:

Quote

“With BTCE, we are transporting bitcoin into the fold of mainstream, regulated financial markets. Investors get the benefits of trading and owning bitcoin through a regulated security while having the optionality of redeeming bitcoin if they choose.”

A product that allows institutional subjects to gain exposure to bitcoin, without all the regulatory, fiscal and compliance nightmare implications of owning physical bitcoin, is a more than welcome news.

Listed on Xetra starting from 17th Jun 2020.

It is possible to track the Official BTC Depositary Wallet via the blockchain:

https://bitinfocharts.com/bitcoin/address/35pgGeez3ou6ofrpjt8T7bvC9t6RrUK4p6

In this spreadsheet I computed the BTC held under the fund: as said, there was a massive growth until the present value of more than 3870 BTC:

Please note the premium is confirmed to be really low, and the impressive growth of BTC held.

More information can be found here:

HanETF BTCetc Product deck:

World’s First Centrally Cleared Bitcoin Exchange Traded Product to list on Deutsche Börse

A brief description on how a ETP is different from a Trust and a Future.

Official websites:

https://btc-etc.com/product.html
https://www.hanetf.com/product/8/fund/btcetc-bitcoin-exchange-traded-crypto-btce

Topic: ETC Group to launch bitcoin ETP on Deutsche Boerse - page 5. (Read 1565 times)