Investors looking for Bitcoin (BTC) have a new option in Germany. On February 25, Boerse Stuttgart – the second largest stock exchange in the country – announced the listing of an exchange-traded product (ETP) that is inversely proportional to the price fluctuations of the cryptocurrency.
The inverse ETP is issued by crypto fund manager 21Shares, formerly known as Amun. The product offers investors a positive return when the price of Bitcoin falls – minus the daily management costs.
The 21Shares Short Bitcoin ETP (SBTC) is already listed on Switzerland’s most important stock exchange SIX Swiss Exchange and will reach an even larger investor base via Boerse Stuttgart, which reported a trading volume of 68.5 billion euros last year.
Hany Rashwan, CEO of 21Shares, has claimed that “investors in Germany have shown strong support for earlier crypto offers” and the company is responding to this strong demand, although cautiously.
SBTC, which trades in euros, is fully hedged 1: 1 with the corresponding underlying asset and has issued a WKN German securities identification code (WKN: A2781V).
21Shares has indeed rolled out a series of derivatives that follow the value of Bitcoin (BTC), Ether (ETH), XRP, Binance Coin (BNB) and Tezos (XTZ), as well as a basket of currencies.
21Shares also confirmed today that its PD3 prospectus regulation for existing ETPs under Swiss law has been approved by the Swedish financial supervisory authority.
In a statement, the director of 21Shares said the approval is a milestone for traditional investors and the crypto community, by opening crypto-based ETP products for both private and institutional clients in Germany and across Europe.
In a previous interview, CEO Hany Rashwan had pointed to the “massive” demand for crypto derivatives, but noted that many of the products that exist today remain in the form of options / futures and are “largely from non-regulated regions built.”
According to him, this situation tends to ward off institutional investors and to result in such complicated and management-intensive products that private investors are also driven out.
Last year, 21Shares – then known as Amun – collaborated with crypto asset manager Bitwise on another multi-crypto-based ETP, which tracks the performance of up to 10 cryptos, also for listing on SIX Swiss Exchange.
Boerse Stuttgart previously collaborated with European digital publishing titan Axel Springer and Finanzen.net to jointly launch a blockchain-powered trading platform, after previously rolling out a zero-cost crypto trading app.