A ‘physical’ Litecoin ETF is coming to Germany’s Xetra exchange

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ETC Group, a specialist supplier of cryptocurrency-backed securities, stated it could record the Bodily Litecoin exchange-traded product (ELTC) on Deutsche Boerse’s XETRA on Wednesday, as per a release.

It follows on the success of the Group’s Bitcoin product (BTCE), which reached over $1 billion in property in simply seven months since itemizing, proving the rising demand for merchandise that allow buyers to dabble in cryptocurrencies minus the security and regulatory considerations.

All in regards to the Litecoin ETP

ETPs are listed on a regulated trade and buyers purchase them by regulated brokerages. These are a few of the most strong methods to commerce and put money into cryptocurrencies and might be traded by buyers in the identical approach as conventional equities.

ETC Group’s ELTC is structured as asset-backed debt safety issued in Germany and is marketed and distributed by HANetf. It is going to monitor the worth of Litecoin, permitting buyers to—put money into the cryptocurrency in a regulated and protected method.

The ETP is the primary Litecoin product to be listed on Xetra and will likely be central counterparty cleared (that means the ETC Group will act as each the customer and the vendor of the ELTC product available in the market). It has a administration charge of two%.

“Litecoin has grown by 342% 6 up to now 12 months and is the ninth-largest cryptocurrency by market capitalization at $14.6 billion 7 with rising curiosity from institutional and retail buyers. It’s usually talked about because the silver to Bitcoin’s gold,” said Bradley Duke, CEO of ETC Group.

He added:

“In distinction to earlier rallies in cryptocurrencies, the present one is the primary to be supported by each retail and institutional buyers, making this the perfect time to launch ELTC.”

The success of institutional Bitcoin merchandise

Duke famous that the coronavirus-stricken financial system and uncertainty have triggered buyers to more and more contemplate investing within the crypto market, as they each supply alternatives for diversification from conventional property whereas offering ‘hedging’ in opposition to inflation.

It’s a sentiment that has been shared by high-profile buyers like Paul Tudor Jones and tech corporations like MicroStrategy and Tesla up to now yr.

In the meantime, the Litecoin product is the third crypto ETC from ETP Group. Early April noticed the discharge of the ETC Group Bodily Ethereum ETC (ZETH)—it tracked the worth of Ethereum—which was the primary Ethereum ETP to be listed on the Deutsche Borse.

The launch follows the large success of ETC Group’s first product, the BTCetc Bitcoin Trade Traded Crypto (ticker BTCE), which launched on XETRA final June. It has since seen its property below administration develop to over $1 billion in simply seven months.

As of press time, the BTCE had a turnover of 925 million on Xetra in February with a market share of 79.4% of the ETN section of Xetra. It ended up changing into essentially the most traded ETP throughout the entire of the trade.

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