In Brief:
- Invesco has announced a spot BTC exchange-traded note (ETN) in Europe.
- Deutsche Boerse introduced the listing of ETN on Xetra under the ticker of BTIC.
- On Xetra, users can access 26 ETNs from seven providers.
Investment asset management firm Invesco has introduced a spot Bitcoin exchange-traded product (ETP) in Europe. The Invesco Physical Bitcoin ETP has a fixed 0.99% annual fee.
Yesterday, German stock market operator Deutsche Boerse revealed the listing of Invesco’s Physical Bitcoin ETN under the ticker of BTIC on Xetra, which is a digital stock exchange platform.
The spot Bitcoin ETN got clearance from Eurex and the product is physically backed by Bitcoin. “Through central clearing, investors benefit from significantly reduced risks in the settlement of transactions,” the announcement notes.
As per the ETF Stream, BTIC will use the exchange to take custody of Bitcoin, which will be provided by Standard Chartered’s crypto custody platform “Zodia”.
CoinShares is a known partner of Invesco and will serve as both the index sponsor and execution agent for the new ETN. BTIC is tracking the CoinShares Bitcoin Hourly Reference Rate index, delivering the price-performance on the underlying asset minus fees.
“Physical bitcoin is a more observable marketplace. One of our concerns was the depth of synthetic liquidity as well as what that may do to valuations over time and that is something we were not wholly comfortable with,” said Gary Buxton, head of ETFs and indexed strategies at Invesco. He added that Invesco has been working on the product “since the middle of 2018.”
Also read: Invesco puts India’s First Blockchain ETF on Hold.
Invesco introducing crypto exchange-traded products (ETP) in Europe comes at a time when Deutsche Boerse continuously ballooned the different crypto derivatives products on crypto exchanges. Currently, the Xetra exchange gives access to 26 ETNs from seven providers on many leading cryptocurrencies including Bitcoin (BTC), Ether(ETH), Bitcoin Cash (BCH), Cardano (ADA), Litecoin (LTC), and many others.
