Gibraltar Stock Exchange has announced the introduction of a new Bitcoin backed security into its list of trading instruments. BitcoinETI, with the assigned ticker BTCETI is an asset-backed Exchange Traded Instrument created by Argentarius ETI Management and invested exclusively in Bitcoin.
In order to include the new asset, Gibraltar Stock Exchange has partnered with Argentarius ETI Management, a well-known entity offering flexible European securitization solutions to investment managers. The new BitcoinETI exchange traded instrument is designed to allow mainstream investors to invest in the digital currency from within the secure regulated boundaries of an established exchange.
In a statement, the CEO of Argentarius Group Andreas Woelfl has explained the BitcoinETI as,
“An Exchange Traded Instrument is a stock exchange traded security that is backed by an underlying asset or a basket of assets and delivers the delta one performance of the underlying. European sophisticated investors such as asset managers, pension funds, and private bankers have now the possibility to capture the performance of Bitcoin through an EU stock exchange”.
With the Gibraltar Stock Exchange approving the inclusion of BitcoinETI, it has now become the first regulated digital currency backed product in the European stock market.
Bitcoin and other digital currencies are known for their price volatility, making them ideal for trading. However, most of the Bitcoin trading happens directly over Bitcoin exchanges and trade platforms. Many investors who are not familiar with handling digital currencies are currently left out of
In addition to the Gibraltar Stock Exchange, the trade instrument will also be co-listed on Deutsche Borse, reports Gibraltar Stock Exchange in a press statement.
iStructure PCC PLC, a Gibraltar-based firm is the issuer of BitcoinETI. The BitcoinETI is created in a collaborative effort between Argentarius ETI Management Limited, Revoltura Limited, Government of Gibraltar and the Financial Services Commission.
The introduction of a virtual currency backed exchange tradable asset marks a milestone in the country’s initiative to become the digital currency hub.
Recently, the Switzerland-based banking institution, Vontobel issued a Bitcoin Tracker Certificate, which has been submitted to the Swiss exchange for approval. Similar to the BitcoinETI, the Swiss Bitcoin Tracker Certificate is also linked to the actual bitcoin value and can be traded over conventional markets.
Ref: Gibraltar Stock Exchange | Image: Duquesa