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A German stock exchange will list a Bitcoin ETP

June 10, 2020

The London-based ETC Group will list the first cryptocurrency product to be traded on the German digital exchange Xetra this month. Traders in the UK, Italy and Austria can also trade shares of the new product.

According to Stream ETF, the ETC Group announced on June 9 that Bitcoin Exchange Traded Crypto (BTCE), a publicly traded product (ETP), is introduced in Deutsche Börse Xetraafter it was approved by German financial regulators.

BTCE tracks the price of Bitcoin (BTC) and is physically secured by the cryptocurrency. Bitcoin is kept in the cold store by digital asset managers, BitGo.

A German stock exchange will list a Bitcoin ETPA German stock exchange will list a Bitcoin ETP

Bradley Duke, CEO of ETC Group, said:

“The cryptocurrency sector has been delayed by concerns about complexity, accessibility and governance. With BTCE, we are bringing Bitcoin into the group of major regulated financial markets. Investors benefit from the benefits of trading and owning Bitcoin from a regulated value while having the option of Get bitcoin if you wish. “

It is not an ETF

The group stated that it offers trading in BTC “through an ETP structure”, which is not the same as a publicly traded fund (ETF). According to the company, the hybrid ETP product does not meet the exact definition of a ETF in the European Union because it is a single asset.

Unproven area in Germany

Despite numerous requests, the U.S. Securities and Exchange Commission has not yet approved a Bitcoin ETF for the public in the U.S. because of concerns about the validity of the assets, market manipulation, and safe storage of physically secured assets.

In March Cointelegraph, He said that the German Financial Regulator (BaFin) has announced the regulatory standards that local companies must comply with if they want to offer cryptocurrency management services. Every German company that manages cryptocurrencies must obtain approval from BaFin.