The financial services company Etc Group launched its centrally processed Ethereum Exchange Traded Product (ETP) on the Xetra marketplace of Deutsche Börse on Tuesday.
Etc Group launches Ethereum’s Exchange Traded Product
The listing follows the success of the company’s Bitcoin ETP, which launched on the same exchange in June 2020. The exchange-traded Bitcoin product now manages $ 1 billion (AUM) in assets.
In a press release, London-based Etc Group revealed that the exchange-traded ether product (primary ticker: ZETH) tracks the price of Ethereum (ETH) and is 100% physically backed by the cryptocurrency.
ETPs allow investors to gain exposure to an asset, in this case ether, without having to buy it themselves.
Each ZETH unit approved by Bafin, the German financial supervisory authority, is secured by an Ethereum that is stored by the custodian service provider Bitgo Trust Company. “The investor is granted a right to a predefined amount of the underlying ETH,” said the company.
“Similar liquidity and tight spreads as the physical Bitcoin product of the Etc Group”
Securities brokers or banks take custody of ZETH, which they have bought over their desks on behalf of investors. With its new exchange-traded Ethereum product, the Etc Group is particularly targeting institutional investors who may have been heavily oriented towards Bitcoin up to now.
“Listing on Xetra is particularly relevant to institutional investors as they can now invest in Ether while trading an institutional grade product with similar liquidity and tight spreads to the Etc Group’s physical Bitcoin product,” she said.
The Ether-ETP is distributed and marketed on a platform operated by Hanetf, a private issuer of exchange-traded funds approved by the European Union. In June last year, the Etc Group listed its Bitcoin ETP (BTCE) on Xetra and in the second half of 2020 became the “most traded product in the ETN segment of the exchange. BTCE is also listed and traded on the SIX Swiss Exchange.
In addition, the competitor 21shares, formerly known officially as Amun, launched an Ether ETP and an ETP listing for Bitcoin Cash (BCH) on Deutsche Börse’s Xetra this week.
What do you think of the Etc Group’s crypto investment products? Let us know in the comments below.
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