New Bitcoin-Backed ETN Debuts In Germany
- A new physical Bitcoin-backed ETN has debuted in Germany
- EQONEX Limited, a German financial services company, has launched the ETN
EQONEX Limited, a technology driven digital assets financial services group, will debut its first investor product with a new physically backed exchange-traded note (ETN), according to the official announcement from the firm, in Germany.
Furthermore, the physical Bitcoin-backed ETN will start trading on the Deutsche Börse XETRA Exchange and German investors will be able to get the direct exposure to Bitcoin’s price action without actually including the leading cryptocurrency in their portfolio.
Interestingly, EQONEX will allow German investors to use standard brokerage services and trade the asset back and forth and redeem the ETNs for actual Bitcoin if they feel the need to. This will be done via a Digivault custody account.
Digivault is a custody provider for digital assets which has been registered with United Kingdom’s Financial Conduct Authority (FCA). It is one of the 35 firms that can boast such accreditation.
“Germany makes an ideal, strategic launchpad for our Investment Products business, given its sophisticated and highly educated investment community. We see the German market as fertile ground for what is likely to be a growing suite of EQONEX exchange-traded products.”said EQONEX CEO Jonathan Farnell.
Additionally, the EQONEX Bitcoin ETN has gained approval from Germany’s Germany’s Federal Financial Supervisory Authority (BaFin) and the firm will debut other crypto-related products in the second half of 2022 as well.
EQONEX Bitcoin ETN only for German investors
The Bitcoin ETN will only be available to German investors. However, in the near future, EQONEX has planned a number of products for the international market as well.
In addition to international expansion, EQONEX also wants the users’ investments to be safe, and as a result, Digivault will hold the physical bitcoin in a segregated account to guarantee that the BTC held in the account cannot be rehypothecated.
Meanwhile, the firm has also confirmed a partnership with Chainalysis to confirm that the Bitcoin investment that comes into the ETN is not assocated with money laundering or criminal activity.
“Investors are looking for a range of ways to access digital asset investment opportunities, so we are excited to offer a product to German investors that provides direct bitcoin exposure, and is available on a regulated, globally recognized exchange.”said Frank Copplestone, EQONEX Head of Investment Products.