Bitpanda Launches Exchange-Traded Note Backed By Physical Bitcoin On Deutsche Boerse

A fully-collateralized, exchange-traded cryptocurrency note that tracks the price of Bitcoin BTC/USD has been launched by Austrian fintech firm Bitpanda.

What Happened: The Bitpanda Bitcoin ETC, traded in Euro, is listed on Deutsche Boerse electronic exchange XETRA.

Bitpanda said in a statement that the note would appeal to investors who want a “hassle-free way” to add cryptocurrencies to their portfolio.

“Over the past few years, the cryptocurrency space has evolved from a niche market to one that’s getting closer to mainstream, and an increasing number of investors are interested in getting exposure to the crypto world,” said Eric Demuth, CEO of Bitpanda.

“Issuing an entirely [European Union] based Bitcoin ETC with Euro as base currency,  we are able to offer exposure to an alternative asset class that we feel is ripe for opportunity in the current market environment,” said Demuth.

BTC has risen 66% over the course of 2021 so far. The apex coin touched an all-time high of $68,789.63 in early November. At press time it traded almost 30% below those highs at $49,354.44. 

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Investors can gain access to cryptocurrency through their usual investment partner without having to deal with moving public or private keys or opening an account with Bitpanda, the company said in a statement.

“Exchange-traded products ensure collateralization with digital assets stored on behalf of the investor in cold storage. The Bitpanda Bitcoin ETC is physically-backed by Bitcoin which is kept in cold-storage with a regulated custodian,” according to Bitpanda.

Even though a number of futures exchange-traded funds have made it to the markets in 2021, the U.S. Securities and Exchange Commission has consistently denied applications for spot market ETFs.

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