BitcoinETI, an asset-backed Exchange Traded Instrument that exclusively invested in bitcoin will be included in the Gibraltar Stock Exchange under the ticker BTCETI.
In an announcement today, the Gibraltar Stock Exchange (GSX) has revealed its addition of BitcoinETI, a bitcoin-centric Exchange Traded Instrument (ETI). The stock exchange states that the asset-backed ETI’s inclusion will be the first European regulated product for the cryptocurrency.
Bitcoin will be the underlying asset backing the Exchange Traded Instrument and the inclusion of BitcoinETI will now enable asset managers and funds assess and track Bitcoin through the Gibraltar Stock Exchange.
The Bitcoin ETI was approved for listing on the GSX on July 22, 2015 and will subsequently be co-listed on Deutsche Börse this week, under the ticker BTCETI.
“GSX is an EU regulated market which offers efficient and cost effective solutions for innovative companies and financial products. We look forward to supporting the BitcoinETI in its entry to the public markets” said Nick Cowan, Managing Director of the Gibraltar Stock Exchange, in a statement.
Gibraltar-based firm iStructure PCC PLC issued the BitcoinETI, following a partnership between a number of stakeholders that includes the Gibraltar government and companies including regional Fintech firm and sponsor Revoltura Limited. The Financial Services Commission, Gibraltar’s financial regulator is also among the partners resulting in the issuance of the Bitcoin-based ETI.
Revoltura Limited is offering BitcoinETI for “sophisticated investors”, with a minimum order size of 100,000€ while listing bitcoin exchange Coinbase as the custodian of the cryptocurrency. Furthermore, listing the ETI on the Gibraltar Stock Exchange enables sales of the instrument across all 33 countries of the European Economic Area (EEA).
Ransu Salovaara, CEO of Revoltura Limited cited Bitcoin’s ever-increasing annual growth, up from 30% in 2015 to another 50% as of July 2016, with a daily trading volume of nearly €1bn as factors that make bitcoin attractive as an investment.
He also added:
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.
Embracing Bitcoin as a Digital Currency Hub
Today’s press release also confirms that the new Bitcoin ETI is only one among several “early initiatives” in the pipeline to establish Gibraltar as a virtual currency hub. Additional digital currency instruments along with those at the forefront of disruptive technology will also be introduced in the future.
Albert Isola, Minister for Financial Services and Gaming in Gibraltar stated:
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.
Meanwhile, the Winklevoss brothers are leading the charge to list a bitcoin-based Exchange Traded Fund (ETF), after a recent update to their US Securities and Exchange Commission application. The filing also sees the twins moving the listing from Nasdaq to BATS, the second largest US equities market operator.
More recently, blockchain-based identity services specialist SolidX Partners Inc., registered with the SEC to launch the SolidX Bitcoin Trust, also a bitcoin ETF, on the New York Stock Exchange.
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