The London-based ETC Group, which is responsible for listing the first publicly traded cryptocurrency product on Deutsche Börse’s electronic trading platform, will offer a new product for Litecoin.
In today’s announcement The ETC Group announced that its physically processed Litecoin product will be launched under the ELTC ticker on the German stock exchange Xetra on April 14th. According to the company, the exchange-traded product (ETP) will be the first Litecoin (LTC) product on the platform after approval by the Federal Financial Supervisory Authority (BaFin).
“The current economic uncertainty has underscored the attractiveness of crypto assets for investors as they offer opportunities to diversify traditional assets such as stocks and bonds, as well as strong inflation hedging qualities.” He said Bradley Duke, CEO of the ETC Group. “Traditional markets will remain volatile. For some time the demand for alternatives such as cryptocurrencies will be spurred.”
And he added:
“Unlike previous rallies in cryptocurrencies, the current rally is the first to be supported by retail and institutional investors, so this is the ideal time to bring ELTC to market.”
The ETC Group’s Litecoin ETP is the group’s third cryptocurrency ETP last year. In June, the company launched a Bitcoin ETP on Xetra, followed by an Ether ETP last month. The company reported that its Ether ETP moved over $ 1 million in its first week on the platform, while Bitcoin’s ETP reportedly grew to over $ 1 billion in assets under management.
An ETP is not exactly the same as an exchange traded fund or ETF. When the ETC Group launched its Bitcoin ETP last year, it said it did “Trading Bitcoin via an ETP Structure”, This does not appear to be in line with the definition of ETF in the European Union as it is a single asset instrument.
As the ninth largest cryptocurrency with a market capitalization of over $ 20 billion, Litecoin has caught the attention of some investment firms alongside Bitcoin and Ether. Although apparently ETC Group will be the first to offer a Litecoin ETP with physical settlement. CoinShares announced earlier this month that it will launch its LTC-ETP on the SIX Swiss Exchange.