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ETC Group announced today that its BTCE Bitcoin product will be able to be traded on the Aquis Exchange as of June 7. This is the first time that an ETP has been able to be traded in the UK or on any European MTF (Multi-lateral trading facility).
According to the announcement, trading will take place via GBP, CHF, Euro, and USD. Clearing will be managed by SIX x-clear, which will be the sole CCP to provide central clearing.
The ETC Group stated that it had carried out its own research into professional investor preferences, and that this had showed that 53% of European professional investors preferred to trade Bitcoin via an ETP.
The ETC Group’s physical Bitcoin ETP (BTCE), made its debut in the June 2020 on the Deutsche Börse’s XETRA platform. This was the world’s first centrally cleared ETP. Since this time, it has been listed on the SIX Swiss Exchange, and by 2021, had become the best ETP performer in Europe, when inflows amounted to nearly $460 million, nearly twice the performance of its nearest rival.
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.”
ETC Group chose Aquis because it is one of the largest regulated European exchanges by value traded. It enables trading of 1,700 securities in 15 European markets. The Aquis exchange does not allow non-client aggressive proprietary trading which means its large liquidity pool is less likely to be affected by negative market impact.
Alasdair Haynes, CEO of Aquis said of his exchange:
“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.”
SIX x-clear was chosen by ETC Group for its robust risk modelling and mitigation processes, which are ideally suited to support the Bitcoin ETP in a cleared environment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice