The world’s first centrally cleared bitcoin exchange-traded product (ETP) started traded on Thursday (June 18) in a partnership between ETC Group and HANetf.
The Bitcoin Exchange Traded Crypto (BTCE), which will be traded on Deutsche Börse’s XETRA platform, tracks the price of bitcoin and is 100% physically backed.
Trading via an ETP structure means investors should be able to buy and sell in the same way they would when trading conventional shares in a regulated environment, without the need to purchase and store bitcoin in a cryptocurrency wallet.
Each unit of BTCE gives the investor a claim on a predefined sum of bitcoin, as with most physically-backed ETPs.
Central counterparty clearance, drawing liquidity from the many fragmented crypto exchanges, reduces the counterparty risk, the providers said in a statement.
BTCE is the first product from ETC Group, which is backed by a number of London financial institutions, and the first cryptocurrency product to be available on HANetf’s white label ETP platform.
Hector McNeil, co-chief executive of HANetf, said: “Yet again HANetf is acting as a force for innovation, demonstrating the power of our white label ETF model to break down the barriers to entry to this market. Investors truly want value added products and HANetf’s unique multi manager platform delivers this – as the launch of BTCE proves.”
ETC Group CEO Bradley Duke said: “BTCE brings the transparency and investor protection that regulators and institutional investors require to the world of bitcoin.
“The crypto sector has been held back by concerns about complexity, accessibility and governance. With BTCE, we are transporting bitcoin into the fold of mainstream, regulated financial markets.
“it is the first centrally cleared bitcoin ETP and that means investors don’t face any counterparty risk.”
HANetf, which specialises in creating innovative ETPs in partnership with third-parties, has previously launched the Royal Mint Physical Gold ETC, the Medical Cannabis & Wellness ETF and the EMQQ Emerging Markets Internet & Ecommerce ETF.
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