ETC Group lists ether exchange traded product on Deutsche Börse’s XETRA

ETC Group is to list ETHetc – ETC Group Physical Ethereum ETC (ZETH) on Deutsche Börse’s XETRA platform on Tuesday 9 March 2021. 

The exchange traded cryptocurrency is structured as an asset-backed debt security issued in Germany, marketed and distributed across Europe by HANetf.

ZETH will track the price of ether and will be listed on Xetra, one of the largest exchanges in Europe, providing investors with a secure and liquid way to gain exposure to the ether cryptocurrency. ZETH will be the first time an Ethereum product will be listed on Xetra and will be central counterparty cleared.

The announcement follows the huge success of ETC Group’s first product – BTCetc Bitcoin Exchange Traded Crypto (ticker BTCE) – which was the first cryptocurrency product to launch on XETRA last June, and which has seen its assets under management grow to over USD1 billion in just seven months. BTCE was the most traded product on the exchange’s ETN segment in the second half of 20201, displacing the highly successful Xetra Gold. In the last 10 days the bid-ask spreads averaged just 13bps. High on-exchange liquidity and tight spreads are important to investors because it greatly reduces market impact when trading in size.

The crypto ETCs provide investors with several benefits over investing directly in the cryptocurrencies they track. Traded on regulated markets, investors can buy and sell the ETCs in the same way they would when trading conventional shares, with the identical regulatory protections in place. ZETH will be central counterparty cleared (CCP). Central clearing, is absent in underlying crypto currency markets, but is a feature that investors expect when trading an ETP on a regulated exchange, as it greatly reduces counterparty risk when trading. ZETH has a management fee of 1.49 per cent.

Bradley Duke, CEO of ETC Group, says: “The last six months have been pivotal for digital assets. The Coronavirus crisis helped illustrate the many benefits of these assets, and their attractiveness to investors.  They offer great diversification from traditional assets such as equities and bonds, and strong hedging qualities against inflation. 

"We have worked really hard to engineer our physically backed Bitcoin ETC (BTCE) to offer investors a safer and more transparent way to gain exposure to Bitcoin and we are now able to offer the same benefits to Ethereum with the listing of ETC Group Physical Ethereum ETC (ZETH). Institutional investors are demanding regulated crypto products that are secure, liquid and central counterparty cleared and ETC Group is building products that adhere to the complex and exacting standards of the institutional investor."

"Ethereum and bitcoin have increased by 430 per cent and 530 per cent respectively in the last 12 months, and we expect valuations to continue to rise over the long term. Traditional markets will remain volatile for some time, fuelling demand for alternatives such as cryptocurrencies. In contrast to previous rallies in cryptocurrencies, the current one is the first to be supported by both retail and institutional investors, making this the ideal time to launch ZETH.” 

Past performance is no guarantee of future performance. Cryptocurrencies are highly volatile and your capital is at risk.

Hector McNeil, co-Founder and co-CEO at HANetf, says: “We are proud to be supporting ETC Group in the listing of ETC Group Physical Ethereum ETC. ETC Group is clearly at the forefront of offering market leading investment products focusing on cryptocurrencies. They address the concerns investors have around the infrastructure of investing in crypto assets, evidence of which is the huge growth in assets under management in their first product, BTCE, which reached over USD1 billion in assets in just over seven months since listing.”