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News | 09.06.2020

ETC Group to launch centrally cleared Bitcoin ETP on Deutsche Börse's XETRA

London, UK. ETC Group announces the listing of BTCetcTM on Deutsche Börse's XETRA in Frankfurt (Ticker BTCE) as early as calendar week 25, 2020, making it the first product of its kind on one of Europe's largest trading venues. The security gives both retail and institutional investors an easy way to add Bitcoin to their investment portfolios.

Approved by BaFin, the German financial regulator, BTCetc (Bitcoin Exchange Traded Cryptocurrency) is structured as a bond that is physically backed by Bitcoin. This structure gives investors several benefits over investing directly in Bitcoin. Because it is traded on regulated markets, investors can purchase it in the same way they would buy shares of a company and with the same regulatory protections. Investors don't need to engage with the problems associated with purchasing and storing Bitcoin, and because BTCetc is fully fungible, owners have the right to take delivery of Bitcoin if they want.

Today other ETP products exist that track the performance of Bitcoin. What is different with BTCetc is that it is traded on one of Europe's top exchanges and is centrally cleared, which removes counterparty risk. Much effort and planning has gone into ensuring adequate on-exchange liquidity and tight spreads so that traders can trade in decent sizes without having to worry about market impact. Holding BTCetc also confers benefits on investors that are missing with a direct investment in Bitcoin. The security can be used as collateral for margin trading and financing, and holders can earn additional yield through stock loan.

"BTCetc brings to the world of Bitcoin the transparency and investor protection that regulators and institutional investors require. The crypto sector has been plagued by bad press related to the lack of regulatory oversight. We are transporting Bitcoin to within the fold of mainstream regulated financial markets. Investors get the benefits of trading and owning a regulated security listed on one of Europe's largest exchanges, while having the optionality of redeeming Bitcoin if they choose."
— Bradley Duke, CEO of ETC Group

Bradley Duke

United within ETC Group is one of the world's largest electronic market makers, two London-based FCA-regulated brokers and a team of experienced financial services professionals. The company's vision is to create the most liquid cryptocurrency-backed exchange traded products.

Investors can purchase BTCetc 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 the Issuer's network of Authorised Participants.

Important: Cryptocurrencies are highly volatile. Your capital is at risk. The value of cryptoassets can go down as well as up and you can lose your entire investment. ETC Management Limited, its affiliates, and subsidiaries are not soliciting any action based upon the material presented above. The material does not represent or shall not be inferred as an offer or a recommendation to buy or sell a security, nor shall it be considered or treated as investment advice.