The first centrally cleared ETP on Ethereum is coming to the German stock exchange

Etc Group, a provider specialized in securities backed by innovative and digital assets, has announced the listing for Tuesday 9 March 2021 of ETHetc – Etc Group Physical Ethereum Etc on Deutsche Börse’s Xetra platform, with ticker Zeth. The product, structured as asset-backed debt security issued in Germany, marketed and distributed across Europe by HANetf, will replicate the price of Ether and will be listed on Xetra, one of the largest exchanges in Europe, giving investors a way safe and liquid to take exposure to the Ether cryptocurrency. Zeth will be the first Ethereum product to be listed on Xetra and will be centrally cleared.

The announcement follows the huge success of Etc Group’s first product, BTCetc Bitcoin Exchange Traded Crypto, which was the first cryptocurrency product to be launched on Xetra last June and which has seen its assets under management grow to over $ 1 billion in just seven months. The product was the most traded ETC on the ETN segment of the exchange in the second half of 2020, dethroning the hugely successful Xetra Gold product. Over the past 10 days, the bid-ask spread has averaged just 13 basis points, noting high liquidity and tight spreads.

Cryptocurrency Etcs offer several advantages over the direct investment they replicate. Being traded on regulated markets, investors can buy and sell Etc as they would with normal stocks, with the same regulatory protections in place. Zeth will also be compensated centrally. Central clearing is absent in the underlying cryptocurrency markets but it is a feature that investors expect when trading an ETP on a regulated exchange, as it greatly reduces counterparty risk when trading. Zeth has a management fee of 1.49%.

Bradley Duke, CEO of Etc Group, stated that “the last 6 months have been fundamental for digital assets. The coronavirus crisis has helped highlight the many benefits of these assets and their attractiveness to investors. They offer great diversification compared to traditional assets such as stocks and bonds and have excellent hedging qualities against inflation. We have worked hard to design our physically secured Bitcoin Etc to offer investors a safer and more transparent way of having exposure to Bitcoin and we are now able to offer the same benefits to Ethereum with the Etc Group Physical Ethereum Etc listing. institutional investors demand regulated cryptocurrency products that are safe,

Hector McNeil, co-founder and co-CEO of HANetf, added how “we are proud to support Etc Group in the listing of Etc Group Physical Ethereum Etc. It is evident that Etc Group is at the forefront of offering market-leading investment products. on cryptocurrencies. It gives solutions to investors’ concerns about the cryptocurrency investment infrastructure and proof of this is the enormous growth in the assets under management of their first product, which has reached over $ 1 billion in assets in just over seven months from listing ” , McNeil pointed out.

Investors will be able to buy ETPs through their usual brokers or their bank with access to Xetra or Six, and private or institutional investors who want to directly trade the Ether or Bitcoins they hold for the financial instrument can do so through authorized participants of the ‘issuer.

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