Heads up digital currency fans: Europe now has a regulated product for cryptocurrency.
The Gibraltar Stock Exchange announced on Monday that it has added BitcoinETI, an asset-backed Exchange Traded Instrument that exclusively invested in bitcoin—making it the first European regulated product for digital currency.
The BitcoinETI was approved for listing on the GSX last July 22, the bourse said in a statement. It will also be co-listed on the Deutsche Boerse this week under the ticker “BTCETI.”
So what does this mean for the popular digital currency?
ETIs are defined as tradeable assets, such as exchange traded securities, that allow a simple and transparent participation in the performance of an underlying instrument—which, in this case, is the bitcoin.
“GSX is an EU regulated market which offers efficient and cost effective solutions for innovative companies and financial products,” said Nick Cowan, managing director of the Gibraltar Stock Exchange, in a statement.
Gibraltar-based iStructure PCC PLC will use BitcoinETI as part of a partnership between several stakeholders, including the Gibraltar government and companies such as regional fintech firm and sponsor Revoltura Limited.
Bitcoin as a new asset class?
For Revoltura Limited, the leading virtual currency is a new asset class that will soon—if not already—find its way into many portfolios.
“Bitcoin’s annual growth in 2015 was 30 per cent and as of July 2016 the growth year to date is another 50 percent. Also importantly, the daily trading volume is around €1 billion ($1.1 billion),” said Ransu Salovaara, CEO of Revoltura Limited.
“By listing the ETI on the Gibraltar Stock Exchange, which is an EU regulated market, we are able to bring a high-level of transparency and liquidity to investors. BitcoinETI is available through regulated brokerage firms across Europe and settlements are handled through Clearstream/Euroclear, just like any other securities,” he added.
Current price and daily transaction volume
The price of bitcoin has dropped—again—on Tuesday. The popular digital currency traded at $653.88 per bitcoin with more than $10.33 billion in market capitalization.