Xetra platform lists first Ether ETPs

Deutsche Börse: Xetra platform lists first Ether ETPs

Deutsche Börse’s trading platform Xetra plans to list two Ether ETPs and a Bitcoin Cash ETP on Tuesday. Crypto ETFs are still unlikely due to EU regulation.

Deutsche Börse’s electronic trading platform Xetra is set to launch its first exchange-traded Ether (ETH) products.

Xetra said the platform would trade two Ether ETPs for the first time on Tuesday. These are ETC Group’s exchange-traded Ether commodity product (ZETH) and 21Shares‘ Ethereum ETP (AETH). A Deutsche Börse spokesperson told Crypto Bank that the two products are the first ever ether ETPs to be listed on Xetra.

In addition to AETH, Xetra will also list 21Shares‘ Bitcoin Cash (BCH) ETP, Laurent Kssis, the company’s global head of ETP, told Cointelegraph. „As of tomorrow, 21Shares will have 4 ETPs listed that are centrally cleared on Xetra. This shows that the exchange has put its trust in us. It has demanded that we bring in more institutional-quality ETPs for investors,“ Kssis said.

According to a statement from ETC Group, ZETH has been approved by the German Federal Financial Supervisory Authority (BaFin). The new crypto investment product offers a physically backed, counterparty centrally cleared ETC on the cryptocurrency Ether that is regulated and held in custody at an institutional level by BitGo Trust Company, the company said.

The planned listings add three new crypto products to the four bitcoin ETPs already listed on Xetra

These are the BTCetc from ETC Group and the Vectors Bitcoin ETN from VanEck, as well as the Bitcoin ETP from 21Shares and the Short Bitcoin ETP.

Xetra, the electronic trading platform operated by Deutsche Börse, is one of the largest trading platforms in Europe. The company said Xetra accounted for almost 90 per cent of the total trading volume of all German exchanges, with over 2,700 tradable securities.

Despite the growing acceptance of crypto ETPs on Xetra, the company is unlikely to launch other types of crypto investment products, such as an exchange-traded crypto fund (ETF), any time soon. Stephan Kraus, head of Deutsche Börse’s ETF department, told Cointelegraph that „ETFs on a single cryptocurrency are not legally possible at the moment“. The reason for this, he said, is the European Union’s regulatory framework for funds.

„For the same reason, there are currently no gold ETFs listed on EU trading venues, for example,“ Kraus said. „ETPs track the price performance of an underlying asset just like ETFs, but legally they are debt instruments and not funds,“ he added.