The London-based ETC Group will this month list the first cryptomoney product to be traded on Germany’s digital stock exchange, Xetra. Traders in the UK, Italy and Austria will also be able to trade shares Bitqt of the new product.

According to ETF Stream, the ETC Group announced on 9th June that Bitcoin Exchange Traded Crypto (BTCE), a listed product (ETP), will be launched on Deutsche Börse Xetra, after it received approval from German financial regulators.

BTCE tracks the price of Bitcoin (BTC) and is physically backed by cryptomoney; Bitcoin will be kept in cold storage by the digital asset custodian, BitGo.

ETC Group CEO Bradley Duke said

„The crypto currency industry has been held back by concerns about complexity, accessibility and governance, and with BTCE, we are bringing Bitcoin to the mainstream of regulated financial markets. Investors get the benefits of trading and owning Bitcoin through a regulated security, while having the option to get Bitcoin if they wish.

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It’s not an ETF
The group stated that it was offering to trade BTC „through an ETP structure“, which is not the same as having a publicly traded fund (ETF). According to the firm, the hybrid ETP product does not meet the precise definition of an ETF in the European Union, as it is a single asset instrument.

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An untested land in Germany
Despite numerous requests, the U.S. Securities and Exchange Commission (SEC) has yet to approve a Bitcoin ETF for the public in the United States, citing concerns about the verification of asset validity, market manipulation and safe storage of physically backed assets.

In March, Cointelegraph, reported that the German financial regulator (BaFin) announced the regulatory standards that local companies must adhere to if they wish to provide cryptomoney custody services, any German company handling cryptomoney must obtain authorization from BaFin.

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