Boerse Stuttgart, a stock exchange based in Germany, has announced today listing an exchange-traded product (ETP) that is inversely correlated with the price fluctuations of cryptocurrencies.
The ETP product was issued by crypto fund manager 21Shares. It is now available for trading on Boerse Stuttgart; Germany’s second largest stock exchange.
The ETP’s value represents the inverse performance of Bitcoin. Thus, when the price of Bitcoin declines, the ETP offers investors a good return minus the daily management fee.
Hany Rashwan, CEO of 21Shares, said:
“This is a first in the bitcoin industry to list a financial instrument wrapped as an ETP with an ISIN/WKN number and trading in EUR. Investors in Germany have demonstrated such strong support for prior crypto offerings. ِAccordingly, it is important for us to listen, though with caution, to the requests of our investors and respond in kind by supporting the investor community who have a strong appetite in cryptocurrencies.”
ETP listed on other exchanges
The ETP is already listed Zurich-based SIX Swiss Exchange in the US dollar.
Laurent Kssis, managing director of 21Shares, said:
“Today’s announcement further stated that 21Shares’s PD3 Prospectus is approved by the Swedish Financial Supervisory Authority (SFSA) for the existing ETPs governed under Swiss law. This is an important milestone for traditional investors and the crypto community alike as SBTC is effectively available to both retail and institutional clients in Germany and the rest of Europe.”
The launch of this product is a natural extension to the existing unleveraged collection of crypto-ETPs. It allows investors to manage the uncertainty and complexities surrounding the he crypto market.
“This was not an easy feat and a lot of credit is due to the hard work of the team for their expertise in navigating the complexities of the traditional system and bringing these innovative digital assets to all European investors,” he added.
Earlier, Cryptolydian reported that several banks in Germany seek regulatory approval to provide crypto services as per the Anti-Money Laundering regulation.
Thus, the Federal Financial Supervisory Authority (BaFin) is reviewing applications from 40 banks seeking to provide crypto services.
The new legislation allows lenders to expand their business to include cryptocurrencies, such as Bitcoin, Ethereum and Ripple.