LONDON–(BUSINESS WIRE)–ETC Group (www.etc-group.com), the specialist provider of innovative, digital asset-backed securities, announces that its BTCE Bitcoin product will be available to trade as of 7 June via the Aquis Exchange MTFs in London and Paris. This is the first time a cryptocurrency exchange traded product (ETP) has been available for trading on any UK market or any European MTF. Trading will take place in GBP, CHF, Euro and USD, while clearing will be carried out by SIX x-clear as the sole CCP providing central clearing.
ETC Group’s own research shows 53% of European professional investors prefer to trade Bitcoin via an ETP1 and by being available to trade on Aquis, BTCE will be reaching a wider group of investors and benefitting from Aquis’ unique and innovative trading features. ETC Group’s BTCetc – ETC Group Physical Bitcoin (BTCE) held its debut as the world’s first centrally cleared Bitcoin ETP on Deutsche Börse’s XETRA platform in June 2020, and then listed on SIX Swiss Exchange in January 2021. In 2021 it has been the top bitcoin exchange traded product (ETP) performer in Europe; inflows in Q1 hit $459.66 million – around 41% of total inflows into the eight Bitcoin ETPs during the period – while daily turnover at $51.158 million was nearly double its nearest rival2.
Bradley Duke, CEO of ETC Group said: “We have seen many investors recognise the benefits of including secure crypto ETPs like BTCE in their portfolios as an effective hedge against inflation. ETC Group provides exposure to bitcoin, ether, and litecoin through our 100% physically backed cryptocurrency ETPs, and bringing our flagship bitcoin product to Aquis Exchange was a logical step as institutional demand for exposure to crypto grows around the world.”
Alasdair Haynes, CEO of Aquis Exchange commented: “Investors are increasingly accepting digital assets as a bona fide asset class and giving them a place in balanced investment portfolios. Aquis has a history of innovation and is responding to client demand for these assets in an agile way allowing traders to access them in a liquid, regulated environment.”
Marcus Harreus, Head SIX x-clear said: “We are extremely proud to be chosen as the sole CCP to carry out the clearing services of this innovative initiative. Our strategy is to extend SIX x-clear across Europe as a leading CCP whilst recognising the importance of a robust oversight framework in order to deliver the best-in-class service for our clients.”
ETC Group selected Aquis due to its status as one of Europe’s largest regulated exchanges (by value traded) trading over 1,700 securities from across 15 European markets, with venues in both the UK and France. Aquis operates an innovative and cost-effective subscription model and does not allow non-client aggressive proprietary trading, which means its large liquidity pool is less subject to negative market impact. Aquis also has a particularly innovative Market At Close order type that allows users to get the mid-point price from the closing auctions. SIX x-clear was selected as the sole CCP for this innovative asset class given its robust risk modelling and mitigation processes to support this product in a cleared environment.
BTCE is supported by a network of world class Authorised Participants (APs) and Market Makers, experienced in cryptocurrency markets as well as the ETP markets. The APs ensure on-exchange liquidity and tight spreads, enabling traders to purchase in all sizes without having to worry about market impact. This latest BTCE listing is set against an investment backdrop where investors are recognising BTCE’s quality, as the most traded cryptocurrency ETP in Europe, which frequently in Q1 2021 displaced major ETFs in terms of top trading volumes on Deutsche Börse’s XETRA.
BTCE will be available on Aquis Exchange for professional investors only. It is issued by ETC Group and distributed by HANetf. Cryptocurrencies are highly volatile and your capital is at risk.
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NOTES TO EDITORS
About ETC Group
ETC Group is specialized in developing innovative digital asset-backed securities and is backed by a number of major London-based financial institutions. Shareholders include XTX Ventures, the venture capital arm of electronic market-making firm XTX Markets, and financial services firm ITI Capital. For more information, visit www.etc-group.com.
Investors can purchase BTCE (Bitcoin ETC), ZETH (Ethereum ETC) and ELTC (Litecoin ETC) through their regular broker or bank with access to XETRA and SIX Swiss Exchange, and individuals or institutions wanting to exchange their Bitcoin, Ethereum or Litecoin holdings directly for the product can do so via the network of Authorised Participants of the Issuer. As with all exchange traded products, an investor’s capital is at risk.
About Aquis Exchange
Aquis Exchange PLC is an exchange services group, which operates pan-European cash equities trading businesses (Aquis Exchange), growth and regulated primary markets (Aquis Stock Exchange/AQSE) and develops/licenses exchange software to third parties (Aquis Technologies).
About SIX x-clear
SIX x-clear as a leading CCP offers a highly diversified clearing services with access to multiple trading platforms across Europe. We deliver multi-asset clearing services in a highly regulated environment while managing risk in real-time. It is one of Europe’s most efficient stable and capitalized CCP clearing houses. SIX x-clear performs key functions that to reduce credit risk, and enables liquidity for an efficient trading environment. SIX x-clear is part of SIX Group, which operates and develops financial market infrastructure services for the Swiss and Spanish financial centres.
GENERAL DISCLAIMER | IMPORTANT INFORMATION
This document (which may be in the form of a press release, social media post, blog post, broadcast communication or similar instrument – we refer to this category of communications generally as a “document” for purposes of this disclaimer) is issued by ETC Management Ltd, a limited company incorporated under the laws of the England, and registered with the Financial Conduct Authority (FCA) as an appointed representative of its principal ITI Capital Ltd since 24 June 2020. This document has been prepared in accordance with applicable UK laws and regulations (including those relating to financial promotions). If you are considering investing in any securities issued by ETC Group, including any securities described in this document, you should check with your broker or bank that securities issued by ETC Group are available in your jurisdiction and suitable for your investment profile. Exchange-traded commodities, or ETCs, are a highly volatile asset and performance is unpredictable. Past performance is not a reliable indicator of future performance. The market price of ETCs will vary and they do not offer a fixed income. The value of any investment in ETCs may be affected by exchange rate and underlying price movements.
This document may contain forward looking statements including statements regarding ETC Group’s belief or current expectations with regards to the performance of certain asset classes. Forward looking statements are subject to certain risks, uncertainties and assumptions, and there can be no assurance that such statements will be accurate and actual results could differ materially. Therefore, you must not place undue reliance on forward-looking statements. This document does not constitute investment advice nor an offer for sale nor a solicitation of an offer to buy any product or make any investment. An investment in an ETC that is linked to cryptocurrency, such as those offered by ETC Group, is dependent on the performance of the underlying cryptocurrency, less costs, but it is not expected to match that performance precisely. ETCs involve numerous risks including among others, general market risks relating to underlying adverse price movements and currency, liquidity, operational, legal and regulatory risks. ETC Issuance GmbH, incorporated under the laws of Germany, is the issuer of any securities described in this document, under the prospectus dated 4 June 2020 (in relation to BTCE) and under the base prospectus dated 14th January 2021 and various sets of final terms (in relation to ZETH and other series of securities issued under that base prospectus), in each case as supplemented from time to time, and approved by BaFin. Any decision to invest in securities offered by ETC Group (including products and amounts) should take into consideration your specific circumstances after seeking independent investment, tax and legal advice. You should also read the latest version of the prospectus and/or base prospectus before investing and in particular, refer to the section entitled ‘Risk Factors’ for further details of risks associated with an investment. These prospectuses and other documents are available under the “Resources” section at etc-group.com. When visiting this website, you will need to self-certify as to your jurisdiction and investor type in order to access these documents, and in so doing you may be subject to other disclaimers and important information.
IF YOU ARE IN THE US OR CANADA Information contained in this document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering in the United States or Canada, or any state, province or territory thereof, where neither the issuer nor its products are authorised or registered for distribution or sale and where no prospectus of the issuer has been filed with any securities regulator. Neither this document nor information in it should be taken, transmitted or distributed (directly or indirectly) into the United States.
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RISKS OF CRYPTOCURRENCIES Cryptocurrencies are highly volatile assets and are known for their extreme fluctuations in prices. While there is potential for significant gains, you are at risk of losing parts or your entire capital invested. The value of the ETCs is affected by the price of its underlying cryptocurrency. The price of cryptocurrencies can fluctuate widely and, for example, may be impacted by global and regional political, economic or financial events, regulatory events or statements by regulators, investment trading, hedging or other activities by a wide range of market participants, forks in underlying protocols, disruptions to the infrastructure or means by which crypto assets are produced, distributed, stored and traded. The price of cryptocurrencies may also change due to shifting investor confidence in future outlook of the asset class. Characteristics of cryptocurrencies and divergence of applicable regulatory standards create the potential for market abuse and could lead to high price volatility. Amounts received by Bondholders (i) upon redemption of the Bonds in USD, in cases where Bondholders are prevented from receiving cryptocurrency for legal or regulatory reasons; or (ii) upon sale on the stock exchange depend on the price performance of the relevant cryptocurrency and available liquidity. For a detailed overview of risks associated with cryptocurrencies and specifically associated with the ETCs, please refer to the prospectus and base prospectus available at the issuer’s website at www.etc-group.com.
1 Source: https://www.hanetf.com/article/668/pressemitteilung-neue-umfrage-ergibt-dass-etps-das-bevorzugte-instrument-sind-fr-professionelle-investoren-in-europa-um-in-bitcoin-zu-investieren
2 Source: Bloomberg as of 31.03.21. Data taken from Bloomberg for the relevant exchanges in Stockholm, Frankfurt and Zurich.