On February 25, Boerse Stuttgart, the second-largest stock exchange in Germany, announced it had begun listing exchange-traded products (ETP) that are inversed with the Bitcoin’s (BTC) swings in price.
This Bitcoin ETP will be issued by 21Shares, the cryptocurrency fund manager previously known as Amun. It offers a positive return for investors whenever BTC prices fall, for a daily management fee.
Besides, it has already been listed on SIX Swiss Exchange, one of Switzerland's most important stock markets. Through Boerse Stuttgart, which boasted €68.5 billion in trading volume in 2019, it’s expected to reach a wider base of investors.
German Investors Very Supportive of Crypto Offerings
According to The CEO, Hany Rashwan, 21Shares' Short Bitcoin ETP (SBTC) has been developed thanks, in part, to the immense support of German investors towards crypto offerings previously.
Currently, SBTC trades in euro and is fully 1:1 hedged with the underlying asset that corresponds to it.
The ETP has also been provided with the WKN: A2781V German securities identification code. The 21Shares team has also announced its PD3 Prospectus Regulation approval by the Swedish Financial Supervisory Authority.
The company’s managing director made a statement in which he referred to this approval as a milestone for both the crypto and traditional investment communities; opening up crypto ETP products to institutional and retail clients not only from Germany but from all over Europe too.
Rashwan Aims at Offering a Regulated Asset in a Market Dominated by Unregulated Ones
Rashwan has said that while the demand for crypto derivatives growing, many of the options and futures products nowadays are built mostly in unregulated regions, causing both retail and institutional investors to be put off.
Back in 2019, when 21Shares was called Amun, it closed a partnership with Bitwise, the crypto asset manager, on a multi-crypto ETP that tracks the performance of up to 10 cryptos and their SIX Swiss Exchange listings.
In the past, Boerse Stuttgart closed a partnership with Axel Springer, the European digital publishing giant, and Finanzen.net, in order to launch a blockchain-based trading venue that rolls out a zero-fee trading app for crypto.