German stock exchange Deutsche Borse has expanded its range of centrally-cleared cryptocurrency products in recognition of the growing interest of institutional investors in the asset class.
Exchange traded notes (ETNs) issued by 21Shares and ETC Group which track the cryptocurrencies Ethereum and Bitcoin Cash will be made available on DB’s Xetra exchange. They will also be physically-backed on the regulated market of the Frankfurt Stock Exchange.
The move follows DB’s launch last June of what it claims was the world’s first centrally cleared Bitcoin ETN on Xetra. It has since gone on to be one of Xetra’s most heavily traded exchange-traded products by both private and institutional investors.
Including crypto-linked ETNs on regulated exchanges means investors “no longer have to turn to unregulated crypto venues or set up their own crypto wallets” said Stephen Kraus, heads of DB’s ETF segment.
“Central clearing of the products significantly reduces the settlement risks and thus enables many professional investors to invest in crypto products,” he added.
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