The German stock exchange Boerse Stuttgart has listed for the first time an ETP based on Bitcoin that will be traded in euros.
The official announcement explains its operation, the ETP will have an inverse correlation with Bitcoin: if the price of Bitcoin drops, that of the exchange-traded product goes up and will always be collateralized with a 1: 1 ratio. The full name of the product is 21Shares Short Bitcoin ETP as it is issued by 21Shares. It was designed to give investors something that allows them to better manage the volatility of Bitcoin.
In reality, Boerse Stuttgart is not the first to offer a similar product: the ETP that will be traded starting today is already available on the SIX Swiss Exchange in Zurich, but paired with dollars. 21Shares already offers a series of products based on cryptocurrencies that have Bitcoin, Ethereum, XRP, Binance and Tezos as their underlying.
Boerse Stuttgart is the second-largest stock exchange in Germany. Last year it reached trading volumes of €68.5 billion.
21Shares is the former Amun AG. It stands out in the financial markets because of its cryptocurrency products. Its aim is to make investments in crypto assets as easy as buying shares through the usual channels, i.e. via brokers or traditional banks. It offers 11 crypto-based products listed by Swiss Crypto Exchange, BX Swiss and now by Boerse Stuttgart, which are traded in US dollars, Swiss francs and euros.
With the launch of ETPs on Bitcoin in Germany, 21Shares aims to expand the market to institutional and retail investors.
Hany Rashwan, CEO of 21Shares said:
“This is a first in the bitcoin industry to list a financial instrument wrapped as an ETP with an ISIN/WKN number and trading in EUR. Investors in Germany have demonstrated such strong support for prior crypto offerings. As an issuer of crypto products, it is important for us to listen, though with caution, to the requests of our investors and respond in kind by supporting the investor community who have a strong appetite in cryptocurrencies”.
Laurent Kssis, Managing Director of 21Shares added:
“Today’s announcement further stated that 21Shares’s PD3 Prospectus is approved by the Swedish Financial Supervisory Authority (SFSA) for the existing ETPs governed under Swiss law. This is an important milestone for traditional investors and the crypto community alike as SBTC is effectively available to both retail and institutional clients in Germany and the rest of Europe. This was not an easy feat and a lot of credit is due to the hard work of the team for their expertise in navigating the complexities of the traditional system and bringing these innovative digital assets to all European investors”.
