ETC Group, a firm that manages investments, is planning to list Bitcoin ETP on Xetra Digital Stock Exchange belonging to Germany towards the end of June.
ETC Group is located in London. For the first time, it will be listing a crypto exchange-traded product (ETP) on Xetra digital stock exchange owned by Germany. This will be meant to serve traders in Italy, Austria, and the UK among others.
The ETC Group announced its readiness to do this on June 9 but will wait for the regulators of the German financial market to approve it.
The Bitcoin Exchange Traded Crypto (BTCE) can be used to monitor the price of Bitcoin upon which it depends. BitGo will be commissioned to hold Bitcoins for the ETC Group offline to prevent them from being hacked.
The CEO of ETC Group said:
“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. Investors get the benefits of trading and owning Bitcoin through a regulated security while having the optionality of redeeming Bitcoin if they choose.”
Not exactly the same as ETF
ETC Group stated that it is using ETP for rendering the service of Bitcoin trading and emphasized that it is not the same as using ETF. The major difference between the more recent ETP and the ETF is that ETP is a single asset instrument.
Germany VS US
Although the US Securities Exchange Commission has received several proposals for Bitcoin ETF, not one of them has been approved for fears that the assets could be hacked and the market could be manipulated.
The situation is quite different in Germany where approvals are given on the condition that the companies must adhere strictly to the regulations upheld by the German financial regulator (BaFin). Bafin also regulates all crypto-affiliated businesses in Germany.