Financial services provider Etc Group on Tuesday launched its centrally cleared exchange-traded product (ETP) on Ethereum on Deutsche Börse’s Xetra marketplace.
Etc Group launchesEthereum exchange product
The listing follows the success of the company’s Bitcoin ETP, which launched on the same exchange in June 2020. According to him, this bitcoin exchange product now has $1 billion in assets under management (AUM).
In a press release, London-based Etc Group revealed that the Ether exchange product (primary ticker: ZETH) tracks the price of Ether (ETH) and is 100% physically backed by the cryptocurrency.
ETPs offer investors access to an asset, in this case Ether, without having to buy it themselves.
Approved by Bafin, Germany’s financial regulator, each ZETH unit is backed by an Ethereum held by custodian Bitgo Trust Company, entitling investors to a predetermined amount of underlying ETH, the company said in a statement.
Similar liquid and hard spreads to physical bitcoin products Etc group
Stockbrokers or banks hold the ZETHs purchased from their fund on behalf of investors. With its new Ethereum exchange product, Etc Group is primarily targeting institutional investors who previously seemed to lean heavily towards bitcoin.
The listing on Xetra is particularly important for institutional investors, as they can now access Ether by trading an institutional-level product that offers the same liquidity and tight spreads as Etc Group’s physical bitcoin product, she explained.
The Ether ETP is distributed and traded through a platform managed by Hanetf, the private issuer of exchange traded funds licensed in the European Union. Etc Group launched its bitcoin ETP, or BTCE, on Xetra last June and it became the most traded product on the ETN exchange segment in the second half of 2020. BTCE is also listed and traded on the SIX Swiss Exchange.
In addition, rival 21shares, formerly known as Amun, launched an ether ETP this week, as well as a listing of Bitcoin Cash Ether (BCH) on Deutsche Boerse’s Xetra exchange.
What do you think of Etc Group’s cryptocurrency investment products? Let us know your comments in the section below.
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