The ETC Group, a specialist provider of cryptocurrency securities, announced that it would be listing the physical list Litecoin Exchange Traded Product (ELTC) on XETRA of Deutsche Börse on Wednesday according to a publication.
It follows the success of the group’s Bitcoin Product (BTCE), which reached over $ 1 billion in assets in just seven months since it was listed, evidencing the growing demand for products that enable investors to get into cryptocurrencies try without safety and regulatory concerns.
Everything about the Litecoin ETP
ETPs are listed on a regulated exchange and are bought by investors through regulated brokers. These are some of the most robust methods of trading and investing in cryptocurrencies and can be traded by investors in the same way as traditional stocks.
The ETC Group’s ELTC is structured as asset-backed debt security in Germany and is marketed and distributed by HANetf. It will track the price of Litecoin and allow investors to invest in the cryptocurrency in a regulated and safe manner.
The ETP is the first Litecoin product to be listed on Xetra and will be released as a central counterparty (ie the ETC Group will act as both buyer and seller of the ELTC product in the market). It has an administration fee of 2%.
The London-based ETC Group announced on Monday that it would be listing a physical litecoin Exchange Traded Commodity (ETC) on the Xetra market of the Frankfurt Stock Exchange on April 14th.$ LTC 💎🙌
– Litecoin. Litecoin forever. (@LitecoinForever) April 12, 2021
“Litecoin has grown 342% 6 in the last 12 months and is the ninth largest cryptocurrency 7 with a market capitalization of $ 14.6 billion 7 with growing interest from institutional and retail investors. It is often referred to as silver to Bitcoin’s gold, ”stated Bradley Duke, CEO of ETC Group.
“Unlike previous rallies in cryptocurrencies, the current rally is the first to be supported by both retail and institutional investors. This is the ideal time to bring ELTC to market.”
The Success of Institutional Bitcoin Products
Duke noted that the coronavirus-hit economy and uncertainty have led investors to increasingly consider investing in the crypto market, as both offer opportunities for diversification from traditional assets while also providing a hedge against inflation.
It’s a feeling that has been shared by high profile investors like Paul Tudor Jones and tech companies like MicroStrategy and Tesla in the past year.
The Litecoin product is now the ETP Group’s third crypto ETC. In early April, the ETC Group Physical Ethereum ETC (ZETH) was released, which tracked the price of Ethereum. It was the first Ethereum ETP to be listed on the German Stock Exchange.
The launch follows the great success of the ETC Group’s first product, the BTCetc Bitcoin Exchange Traded Crypto (ticker BTCE), which was launched on XETRA last June. Since then, assets under management have grown to over $ 1 billion in just seven months.
At the time of going to press, BTCE had sales of €925 million on Xetra in February with a market share of 79.4% in the ETN segment of Xetra. It became the most traded ETP on the entire exchange.
Get one Edge on the cryptoasset market
As a paid member, access more crypto insights and context in every article CryptoSlate Edge.
Sign up now for $ 19 / month. Discover all the advantages
Do you like what you see? Subscribe to updates.