A new exchange-traded product (ETPs) that tracks the inverse value of Bitcoin BTC is now available for trading on the Boerse Stuttgart in Euro. Boerse Stuttgart is Germany’s second-largest stock exchange, reporting trading volumes of EUR 68.5 billion in 2019.
Unprecedented in the crypto space as well as the ETP world, the tracker product’s value represents the inverse performance of the underlying asset Bitcoin BTC; when the price of Bitcoin goes down, the ETP goes up correspondingly, minus a daily management fee. The product is fully hedged with the corresponding underlying asset 1:1. The launch of the first inverse or 21Shares Short Bitcoin ETP is a natural extension to the existing unleveraged range of crypto ETPs and offers a greater choice to investors by which they may better manage the increased volatility and changing dynamics of the cryptocurrency markets.
The newly-listed product (WKN: A2781V), which is already listed and traded on the SIX Swiss Exchange in Zurich in USD, is part of the 21Shares’ product suite that has previously seen a basket of crypto assets (HODL), Bitcoin (ABTC), Ethereum (AETH), XRP (AXRP), Binance (ABNB) and Tezos (AXTZ) tracking products brought to market on the SIX Swiss Exchange in 2018 and 2019 respectively in USD. Also admitting to listing on BX Swiss for the ETP in CHF as well as Boerse Stuttgart in Euro.
“This is a first in the bitcoin industry to list a financial instrument wrapped as an ETP with an ISIN/WKN number and trading in EUR. Investors in Germany have demonstrated such strong support for prior crypto offerings. As an issuer of crypto products, it is important for us to listen, though with caution, to the requests of our investors and respond in kind by supporting the investor community who have a strong appetite in cryptocurrencies,” explains Hany Rashwan, CEO of 21Shares.
“Today’s announcement further stated that 21Shares’s PD3 Prospectus is approved by the Swedish Financial Supervisory Authority (SFSA) for the existing ETPs governed under Swiss law. This is an important milestone for traditional investors and the crypto community alike as SBTC is effectively available to both retail and institutional clients in Germany and the rest of Europe. This was not an easy feat and a lot of credit is due to the hard work of the team for their expertise in navigating the complexities of the traditional system and bringing these innovative digital assets to all European investors,” says Laurent Kssis, Managing Director of 21Shares.
Fully collateralised by underlyings, custodied in segregated accounts with an independent custodian and listed on a regulated Swiss stock exchange, these institutional-grade trackers are ideal product structures for both retail and institutional investors to get exposure to these nascent digital asset classes. With the introduction of the SBTC tracker, investors can immediately and securely capitalise on falling adverse price movements of the largest and most liquid digital asset.
21Shares represent the new name of the family of Exchange Traded Products issued by 21Shares AG, formerly named Amun AG. The entire suite of existing ETPs will be migrated over the new 21Shares brand in the early part of the second quarter 2020.