HanEtf has said ETC Group, a digital asset-backed securities specialist, is set to list the ETC Group Physical Litecoin ETC on Deutsche Börse’s XETRA platform on Wednesday, the first Litecoin exchange-traded product (ETP) to be listed on the Deutsche Borse.
The company said the ETP, which will be marketed and distributed by HanETF, will track the price of the Litecoin cryptocurrency and will provide investors with an “institutional grade product” to gain exposure to Litecoin.
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The launch follows the success of ETC Group’s first product, the BTC etc Bitcoin Exchange Traded Crypto, which was launched on the XETRA platform last June and has seen its assets under management swell to over US$1bn.
ETC also listed another ETP, the ETC Group Physical Ethereum ETC, earlier this month to track the price of Ether, the token that powers the Ethereum blockchain, which traded over US$1mln in its first week of launch.
“Litecoin has grown by 342% in the past 12 months and is the ninth largest cryptocurrency by market capitalisation at US$14.6bn with growing interest from institutional and retail investors. It’s often talked about as the silver to Bitcoin’s gold. The current economic uncertainty has underlined the attraction of crypto assets for investors as they offer opportunities for diversification from traditional assets such as equities and bonds, and strong hedging qualities against inflation. But it is a crowded market with more than 8,700 cryptocurrencies, making it difficult for investors to select assets and to store and manage them”, ETC Group chief executive Bradley Duke said in a statement.
“Our physically backed Bitcoin ETC was designed to provide investors with a safer and more transparent way to gain exposure to Bitcoin and we are now able to offer the same benefits to Litecoin with the listing of ETC Group Physical Litecoin ETC in addition to the ETC Group Physical Ethereum ETC, which launched earlier this month. Institutional investors are demanding regulated crypto products that are secure, liquid and central counterparty cleared and ETC Group is building products that adhere to the complex and exacting standards of the institutional investor. Traditional markets will remain volatile for some time, fuelling demand for alternatives such as cryptocurrencies. In contrast to previous rallies in cryptocurrencies, the current one is the first to be supported by both retail and institutional investors, making this the ideal time to launch ELTC”, he added.
“We are excited to be supporting the ongoing expansion at ETC Group and the launch of their third crypto ETC with the listing of ETC Group Physical Litecoin ETC. ETC Group is firmly established as a market leader in offering investment products focused on crypto assets. The huge success of their first product, BTCE, which reached over $1 billion in assets in just over seven months since listing3 demonstrates the growing demand for products which enable investors to avoid concerns about the technical challenge of buying and storing cryptocurrencies. ETPs are listed on a regulated Exchange and investors buy them through regulated brokerages. This is arguably the most robust way to trade and invest in cryptocurrencies”, said HanETF co-chief executive Hector McNeil.