The massive exchange located in Germany, Deutsche Boerse Xetra has just added the possibility of investing in Bitcoin, Ethereum, and Litecoin on their platform, through physically-backed Exchange Traded Products. Those ETPs are offered by CoinShares, a European-based digital asset manager.
On Monday, CoinShares published an announcement on their platform, stating that their physical Bitcoin, Ethereum, and Litecoin ETPs have just been added to the portfolio of the vast German exchange named Deutsche Boerse Xetra. You can read the full announcement here:
The ETPs are physically backed, which should mean a great lot to those previously afraid of investing in cryptocurrency, citing the lack of being supported by something (i.e. gold, in the case of the United States Dollar) as a reason for not choosing to invest in crypto. CoinShares is seemingly trying to offer an alternative to these investors, allowing them to invest in ETPs – physically-backed cryptocurrencies.
For example, each of the CoinShares Bitcoin ETPs is backed by 0.001 Bitcoin. The physical Ethereum (ETHE) provided by the same company was backed with 0.03 when the platform launched their Ethereum ETPs, and in the case of the physical Litecoin, each ETP, named LITE, backed with 0.2 LTC.
How did Coinshare manage to get so far as to get its ETPs listed on Deutsche Boerse?
Getting cryptocurrencies, NTFs, or now, ETPs listed on exchanges is very hard, as we all know. It took Coinshare a lot of approvals from various European Union regulators to manage to get their ETPs on Deutsche Boerse Xetra.
“Focusing on market demand, we launched earlier this year, our institutional platform CoinShares Physical first in Switzerland and now in Europe,” declared CoinShares CEO Jean-Marie Mognetti.
Some investors more trust physically-backed cryptocurrencies than other forms of digital asset investments. This is not the first case when physically-backed ETPs get listed on exchanges. For example, in 2020, the UK-based ETC Group decided to list BTCE (Bitcoin Exchange Trading Crypto) in their portfolio.
CoinShares managed to get listed in Germany also allowed them to enter plenty of other European markets, such as Norway, Finland, France, Spain, Denmark, Belgium, Luxembourg, Netherlands, Austria, and Italy.
For the last two years, we’re beginning to see a lot of headlines like this. Without a doubt, this means that more and more companies, and especially regulated exchanges, are beginning to look at the crypto scene more and more as a new product that everyone is asking for.
We don’t know for sure whether ETPs are the next big thing, as was the case with ETFs, but as we always say, more exposure means that many newcomers are going to be joining the digital assets community, one way or another. Whether it’s cryptocurrencies, ETFs, ETPs – every new listing, an agreement between companies, or, in this case, publishing on huge exchanges like Deutsche Boerse Xetra is, will more than likely bring many new curious investors to join the crypto world.