ETC Group to list the first Litecoin ETP on Deutsche Börse’s XETRA
ETC Group, the specialist provider of innovative, digital asset-backed securities, will list LTCetc – ETC Group Physical Litecoin ETC (Ticker: ELTC) on Deutsche Börse’s XETRA platform on 14 April 2021.
The exchange traded cryptocurrency is structured as an asset-backed debt security issued in Germany, and is marketed and distributed by HANetf. ETC Group´s Physical Litecoin ETC (Ticker: LITE) will track the price of Litecoin providing investors with an institutional grade product gain exposure to the Litecoin cryptocurrency.
ELTC is the first Litecoin product to be listed on Xetra and will be central counterparty cleared. The launch follows the success of ETC Group’s first product - BTCetc Bitcoin Exchange Traded Crypto (ticker BTCE) – launched on XETRA last June, which has seen its assets under management grow to over USD1 billion in just seven months. BTCE had a turnover of 925million EUR on Xetra in February with a market share of 79.4 per cent of the ETN segment of Xetra and was the most traded ETP across the whole of Xetra. It’s the third crypto ETC from ETP Group – earlier this month it listed ETC Group Physical Ethereum ETC (Ticker: ZETH) which tracks the price of Ether and was the first Ethereum ETP to be listed on the Deutsche Borse. ZETH traded over USD1million in its first week of launch and had spreads of just 23 basis points.
This growing range of crypto ETCs provides 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. ELTC will be central counterparty cleared (CCP). The first time Lite Coin will be central counterparty cleared globally. Central counterparty 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. ELTC has a management fee of 2 per cent.
Bradley Duke, CEO of ETC Group, says: “Litecoin has grown by 342 per cent in the past 12 months and is the nineth largest cryptocurrency by market capitalisation at USD14.6 billion with growing interest from institutional and retail investors. It’s often talked about as the silver to Bitcoin’s gold.
“The current economic uncertainty has underlined the attraction of crypto assets for investors as they offer opportunities for diversification from traditional assets such as equities and bonds, and strong hedging qualities against inflation. But it is a crowded market with more than 8,700 cryptocurrencies, making it difficult for investors to select assets and to store and manage them.
“Our physically backed Bitcoin ETC (BTCE) was designed to provide investors with a safer and more transparent way to gain exposure to Bitcoin and we are now able to offer the same benefits to Litecoin with the listing of ETC Group Physical Litecoin ETC in addition to the ETC Group Physical Ethereum ETC which launched earlier this month.
“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.
“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 ELTC.”
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 excited to be supporting the ongoing expansion at ETC Group and the launch of their third crypto ETC with the listing of ETC Group Physical Litecoin ETC. ETC Group is firmly established as a market leader in offering investment products focused on crypto assets. The huge success of their first product, BTCE, which reached over USD1 billion in assets in just over seven months since listing demonstrates the growing demand for products which enable investors to avoid concerns about the technical challenge of buying and storing cryptocurrencies. ETPs are listed on a regulated Exchange and investors buy them through regulated brokerages. This is arguably the most robust way to trade and invest in crypto currencies.”