Bitcoin Market News: Bitcoin ETP launched on Deutsche Boerse's Xetra
- ETC Group announced the listing of Bitcoin backed ETP on the German Stock Exchange.
- The community sees it as a positive development for Bitcoin price.
The London-based ETC Group will list a fully cleared Bitcoin exchange-traded product (ETP) on the German Stock Exchange. The produce is 100% physically backed. Each unit will give its holder a claim on a specific amount of Bitcoin. ETC Group will act as a central counterparty for the new vehicle, which means the clients will avoid the risks of default by the counterparty.
The new instrument is listed under ticker BTCE and will be distributed and marketed via HANetf’s issuance business. According to the press-release, published by HANetf, the German financial regulator BaFin gave a green light to BTCE in March.
Bradley Duke, CEO of ETC Group, commented in a statement:
With BTCE, we are transporting Bitcoin into the fold of mainstream, regulated financial markets. Investors get the benefits of trading and owning Bitcoin through a regulated security while having the optionality of redeeming Bitcoin if they choose.
The structure of the new instrument looks similar to physically-backed gold exchange traded commodities, which means investors will be able to redeem the contract in Bitcoin.
The cryptocurrency community has been mostly enthusiastic about the launch of BTCE as it paves way to further BTC adoption on large scale. The exchange-traded product will allow participants of the regulated market to get access to cryptocurrency. The listing is scheduled on the end of the month. Crypto Twitter analyst MMCrypto commented:
The German Stock Exchange just listed a fully #Bitcoin settled product BTCE! Everyone can now invest in $BTC from their stock dashboard!
BTC/USD: Technical picture
Meanwhile. BTC/USD is locked in a tight range under $10,000. The attempts to settle above this psychological barrier proved fruitless so far. Once it is out of the way, the upside is likely to gain traction with the next focus on the highest level of 2020 at $10,511. On the downside, the first critical barrier comes at $9,000. It is reinforced by daily SMA50, and it separates us from a deeper decline towards $8,000 with daily SMA100 and SMA200 clustered around this barrier.
BTC/USD daily chart
-637273939087428216.png)
Author
Tanya Abrosimova
Independent Analyst
