Deutsche Bore’s electronic trading platform, Xetra, is preparing to launch its first exchange-traded product on an Ether (ETH) or ETP basis.
According to Xetra, the platform should start trading with two Ether ETPs – ETC Group, Tradeable Ether, or ETC, Product (ZETH) and 21Shares Ethereum ETP (AETH) – on Tuesday. A Deutsche Boerse spokesperson told Cointelegraph that the two products will be the first Ether ETPs ever listed on Xetra.
In addition to AETH, Xetra will also list ETP 21Shares Bitcoin Cash (BCH), ETP Global Head Laurent Cassie told Cointelegraph. “Starting tomorrow, 21Shares will have 4 ETP programs that are centrally scanned in Xetra, showing how much the stock market trusts us and asking us to offer more institutional ETP programs to investors,” said Cassie.
According to a statement from the ETC Group, ZETH has been approved by the Federal Financial Supervisory Authority, the German financial regulator, known as BaFin. The new ETC cryptocurrency investment product provides physically backed and licensed counterparty Ether cryptocurrencies in a BitGo Trust Company-regulated founding vault.
The upcoming listings will feature three new cryptocurrencies for the four Bitcoin ETPs already listed on Xetra, including ETC BTCetc groups and VanEck’s Vectors Bitcoin ETN, as well as 21Shares Bitcoin ETP and Short Bitcoin ETP.
Xetra is an electronic trading platform operated by Deutsche Borse and is one of the largest trading platforms in Europe. The company said Xetra accounts for nearly 90% of the total trading volume on all German exchanges, with more than 2,700 convertible securities listed.
Despite the growing adoption of Xetra crypto-ETPs, it is unlikely that the company will launch other types of crypto investment products anytime soon, such as a cryptocurrency fund or ETF. “ETFs per cryptocurrency are currently legally impossible” due to funding rules in the European Union, Stefan Krause, head of ETF at Deutsche Bore, told Cointelegraph.
“For the same reason, for example, there are currently no Gold Exchange ETFs listed on trading floors in the European Union,” Krause said. “ETP tracks the underlying asset price in the same way as ETFs, but they are legal debt instruments, not money,” he added.