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New Bitcoin exchange-traded product listed on Deutsche Borse

Thursday 11 June 2020 08:41 CET | News

ETC Group, a UK-based investment company, has announced plans to list a Bitcoin-backed security on the German electronic trading market later in June 2020.

The exchange-traded product (ETP), called the Bitcoin Exchange Traded Crypto (BTCE), aims to be centrally cleared derivative crypto asset, and would be listed on Deutsche Borse’s Xetra market based in Frankfurt, Germany.

Central clearing is a tool used in the European derivatives market to bolster stability by ensuring a financial institution takes on counterparty credit-risk. The crypto security is also backed by Bitcoin, with each share giving the holder a claim to a specific amount of the cryptocurrency. According to the ETC Group, the physical Bitcoin would be stored in a cold vault, operated by US-based custodian BitGo.

The unveiling of this new security comes after the German financial authority, BaFin, announced in March 2020 it would officially recognise cryptocurrencies as financial instruments. The Bitcoin-backed security will be available in Germany and has also been passported to the UK, Italy, and Austria.
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Keywords: Bitcoin Exchange Traded Crypto, Xetra, Deutsche Borse, cold storage, BitGo, BaFin, financial institution, Bitcoin, crypto security, Germany, ETC Group
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Germany
This article is part of category

Blockchain & Cryptocurrencies