First European-Regulated Bitcoin Product Launched by the Gibraltar Stock Exchange

The Gibraltar Stock Exchange (GSX)
announced

the launch of BitcoinETI, an asset-backed Exchange Traded
Instrument that is invested exclusively in Bitcoin, making it the
first European-regulated product for the leading digital currency.
The ETI is listed on GSX with the ticker BTCETI and is
in the
process

of also being co-listed on Deutsche Börse in the coming weeks.

“GSX is an E.U.-regulated market which offers efficient and
cost-effective solutions for innovative companies and financial
products,” said GSX Managing Director Nick Cowan. “We look forward
to supporting the BitcoinETI in its entry to the public
markets.”

BitcoinETI is issued by iStructure PCC PLC, a Gibraltar-based
company, in partnership with
Argentarius
ETI Management Limited

(Listing Member of GSX and securitization specialist),
Gibraltar-based fintech specialists
Revoltura
Limited

(an iStructure PCC PLC subsidiary), the government of Gibraltar,
and the Financial Services Commission (Gibraltar’s regulator.)

“An Exchange Traded Instrument is a stock exchange traded
security that is backed by an underlying asset or a basket of
assets,” Argentarius CEO Andreas Woelfl said in a
statement

. “European sophisticated investors such as asset managers, pension
funds, and private bankers have now the possibility to capture the
performance of Bitcoin through an E.U. stock exchange.”

Exchange Traded Instruments pegged to the value of Bitcoin are
convenient for traditional investors who want to bet on Bitcoin
without going through the hassle of trading Bitcoin itself.

Bitcoin Tracker One,
a trust listed on the Nasdaq Stockholm exchange

, is up 66 percent since April 1. Grayscale Bitcoin Trust, which
trades on the OTC markets

and
was created

by Digital Currency Group CEO Barry Silbert, is up 120 percent over
the same period. Earlier in July, blockchain technology company
SolidX Partners filed a registration statement with the Securities
and Exchange Commission (SEC) for the proposed launch of the
SolidX Bitcoin Trust

, a new Exchange Traded Fund for traditional investors.

“By listing the ETI on the Gibraltar Stock Exchange, which is an
E.U.-regulated market, we are able to bring a high-level of
transparency and liquidity to investors,” said Revoltura CEO Ransu
Salovaara. “BitcoinETI is available through regulated brokerage
firms across Europe and settlements are handled through
Clearstream/Euroclear, just like any other securities.”

Salovaara added that Bitcoin’s annual growth was 30 percent last
year, and as of July 2016 the year-to-date growth is another 50
percent. “Also importantly, the daily trading volume is around €1
billion,” he said.

In a recent
Steemit post

, Salovaara explained further that BitcoinETI enables asset
managers, hedge fund managers and other professional investors to
invest in unregulated Bitcoin through a stock exchange and standard
settlement system (Euroclear), just like investing in any other
security.

Reuters

notes

that BitcoinETI will be available through regulated brokerages
across Europe, and that regulation of Bitcoin and fintech in Europe
is more agile than in the United States, where the Winklevoss twins
have been waiting for approval for a proposed Bitcoin
exchange-traded fund for three years.

BitcoinETI

has its own
brand new
website

with daily charts, resources, and a

prospectus

for investors. The ETI, defined as a
UCITS

-eligible, asset-backed security whose value and the related
performance is linked to the underlying asset (Bitcoin)
collateralized in a segregated cell, can be purchased by suitable
investors through their usual brokers, with a minimum investment of
€100,000, a management fee of 1.75 percent, and two days settlement
via Clearstream/Euroclear.

The BitcoinETI issuers express confidence that the value of
Bitcoin could grow exponentially over the coming years, and invite
portfolio managers seeking alternative assets to consider the
digital currency as a way to diversify their investments and boost
their performance.

The announcement notes that the new Bitcoin ETI forms part of a
series of early initiatives aimed at establishing Gibraltar as a
virtual currency hub. There are other virtual currency hubs in
Europe, most notably the
Isle of Man

– and arguably
the whole U.K

. – but Gibraltar could become especially interesting in the
future. In fact, the tiny region – a British overseas territory
geographically located in mainland Spain and a major point of
contention in Anglo-Spanish relations – has established itself as
an online gambling and financial services center, and could become
an important U.K.-E.U. interface after Brexit.

“We continue to work with the private sector and our regulator
on an appropriate regulatory environment for operators in the
digital currency space, and the launch of this ETI on our stock
exchange demonstrates our ability to be innovative and deliver
speed to market,” said Gibraltar’s Minister for Financial Services
and Gaming, Albert Isola. “I am delighted to welcome BitcoinETI to
Gibraltar and congratulate GSX and Argentarius on this
initiative.”

Revoltura hinted at plans to introduce and list further digital
currency and disruptive technology instruments in the near
future.

mm

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