Team behind $1 billion Bitcoin ETP to list the first Litecoin exchange traded product on Deutsche Börse’s XETRA

• ETC Group is set to list the ETC Group Physical Litecoin ETC (Ticker: ELTC) on 14^th of April, the first Litecoin exchange traded product (ETP) to be listed on the Deutsche Börse
• New launch follows the huge success of ETC Group’s first product BTCE - ETC Group Physical Bitcoin,
• which listed on Deutsche Börse’s XETRA in June 2020 has amassed over $1 billion in AUM and the launch of the ETC Group Physical Ethereum ETC , the first Ethereum exchange traded product in March 2021
• The new Physical Litecoin ETC will be a central counterparty cleared exchange traded product and will track the price of the Litecoin cryptocurrency, with the security, safety, and liquidity of trading on regulated markets
• The Litecoin, Bitcoin and Ethereum products by ETC Group are distributed on the HANetf platform alongside its existing range of innovative ETFs and ETPs

ETC Group, the specialist provider of innovative, digital asset-backed securities, has announced that it will list ELTC – ETC Group Physical Litecoin ETC (Ticker: ELTC) on Deutsche Börse’s XETRA platform on Wednesday 14^th April 2021. The exchange traded cryptocurrency is structured as an asset-backed debt security issued in Germany, and is marketed and distributed by HANetf.

ETC Group´s Physical Litecoin ETC (Ticker: LITE) will track the price of Litecoin providing investors with an institutional grade product to gain exposure to the Litecoin cryptocurrency. ELTC is the first Litecoin product to be listed on Xetra and will be central counterparty cleared[1].

The launch follows the huge success of ETC Group’s first product - BTCE (Bitcoin Exchange Traded Crypto, ticker BTCE) – launched on XETRA last June, which has seen its assets under management grow to over $1 billion in just seven months[2]. BTCE had a turnover of 925million EUR on Xetra in February with a market share of 79.4% of the ETN segment of Xetra and was the most traded ETP across the whole of Xetra[3].

It’s the third crypto ETC from ETP Group – in March 2021 it listed ETC Group Physical Ethereum ETC (Ticker: ZETH) which tracks the price of Ether and was the first Ethereum ETP to be listed on the Deutsche Bö‎rse. ZETH traded over $1million in its first week of launch[4] and had spreads of just 23 basis points[5].

Bradley Duke, CEO of ETC Group said:

Litecoin has grown by 342% [6] in the past 12 months and is the nineth largest cryptocurrency by market capitalisation at $14.6 billion [7] with growing interest from institutional and retail investors. It’s often talked about as the silver to Bitcoin’s gold.

The current economic uncertainty has underlined the attraction of crypto assets for investors as they offer opportunities for diversification from traditional assets such as equities and bonds, and strong hedging qualities against inflation. But it is a crowded market with more than 8,700 cryptocurrencies [8], making it difficult for investors to select assets and to store and manage them.

Our physically backed Bitcoin ETC (BTCE) was designed to provide investors with a safer and more transparent way to gain exposure to Bitcoin and we are now able to offer the same benefits to Litecoin with the listing of ETC Group Physical Litecoin ETC in addition to the ETC Group Physical Ethereum ETC ,which launched in March 2021.

Institutional investors are demanding regulated crypto products that are secure, liquid and central counterparty cleared and ETC Group is building products that adhere to the complex and exacting standards of the institutional investor.

Traditional markets will remain volatile for some time, fuelling demand for alternatives such as cryptocurrencies. In contrast to previous rallies in cryptocurrencies, the current one is the first to be supported by both retail and institutional investors, making this the ideal time to launch ELTC.

Past performance is no guarantee of future performance. Cryptocurrencies are highly volatile, and your capital is at risk.

Hector McNeil, co-Founder and co-CEO at HANetf, said:

We are excited to be supporting the ongoing expansion at ETC Group and the launch of their third crypto ETC with the listing of ETC Group Physical Litecoin ETC. ETC Group is firmly established as a market leader in offering investment products focused on crypto assets. The huge success of their first product, BTCE, which reached over $1 billion in assets in just over seven months since listing3 demonstrates the growing demand for products which enable investors to avoid concerns about the technical challenge of buying and storing cryptocurrencies. ETPs are listed on a regulated Exchange and investors buy them through regulated brokerages. This is arguably the most robust way to trade and invest in crypto currencies.

ELTC – ETC Group Physical Litecoin (ELTC)

Approved by BaFin, the German financial regulator, each unit of ELTC is physically backed by Litecoin stored in regulated, institutional-grade safe custody. This gives the investor a claim on a predefined amount of Litecoin - a structure very similar to physically backed gold exchange traded commodities and allows investors the option for redemption in Litecoin. The ETC structure is based on a transparent and verifiable process to ensure that the provenance of the Litecoin in custody has been strictly vetted. Investors do not need to engage with the technical challenges of purchasing and storing the cryptocurrencies such as setting up a cryptocurrency wallet or trading on unregulated crypto exchanges and there is no need to manage cryptographic keys or engage with blockchain technology at all. Units of ELTC are safely held with an investor’s securities broker or bank, thus removing the risk of losing the investment because of, for instance, lack of knowledge of how cryptographic keys work.

ELTC will be supported by a network of world class Authorised Participants (APs) and Market Makers such as Flow Traders, experienced in cryptocurrency markets as well as the ETP markets. The APs ensure on-exchange liquidity and tight spreads, enabling traders to purchase in all sizes without having to worry about market impact.

Trading will be centralised on XETRA, drawing liquidity from the many fragmented crypto exchanges. ETPs are at their most powerful when they democratise access to difficult-to-access asset classes and can harness global liquidity in a robust, and tried and tested product structure.

Informations importantes

Communication à caractère promotionnel. Les informations contenues dans le présent Document sont fournies à des fins d’information et de pédagogie. Elles ne constituent ni un conseil en investissement, ni une recommandation personnalisée, ni une sollicitation en vue d’acheter ou de vendre un instrument financier.

Le présent Document (qui peut prendre la forme d’une présentation, d’un communiqué de presse, d’une publication sur les réseaux sociaux, d’un article de blog, d’une communication audiovisuelle ou d’un support similaire – ci-après le « Document ») est émis par Bitwise Europe GmbH (« BEU » ou l’« Émetteur »).

Bitwise Europe GmbH est constituée selon le droit allemand et agit en qualité d’émetteur des produits négociés en bourse (« Exchange Traded Products » ou « ETP ») mentionnés dans le présent Document. Les ETP sont émis sur la base d’un prospectus de base et de conditions définitives, susceptibles d’être complétés. Un prospectus a été publié ou, le cas échéant, sera publié conformément au Règlement (UE) 2017/1129. Les investisseurs peuvent obtenir gratuitement le prospectus de base, les conditions définitives applicables ainsi que tout supplément éventuel sur le site www.bitwiseinvestments.eu/fr

L’approbation d’un prospectus par l’autorité compétente ne constitue ni une approbation ni une recommandation des instruments financiers concernés.

Capital à risque. Les crypto-actifs sont des actifs hautement volatils et présentent un risque élevé. La valeur des investissements dans des crypto-actifs ou dans des ETP liés aux crypto-actifs peut fluctuer fortement à la hausse comme à la baisse et les investisseurs peuvent perdre tout ou partie de leur capital investi.

Les ETP liés aux crypto-actifs sont des instruments financiers complexes et peuvent ne pas convenir à tous les investisseurs. Ils peuvent exposer les investisseurs à des risques spécifiques, notamment un risque de crédit de l’émetteur, un risque de liquidité, des risques opérationnels ainsi que des risques liés au fonctionnement, à la réglementation et à la valorisation des marchés des crypto-actifs sous-jacents.

Aucun mécanisme de garantie du capital ne s’applique. Selon la juridiction et le mode de détention, les investisseurs peuvent ne bénéficier d’aucun mécanisme public d’indemnisation ou de protection des investisseurs.

Les performances passées ne constituent pas un indicateur fiable des performances futures. Toute déclaration prospective reflète des hypothèses et des anticipations et ne constitue pas une garantie de résultats futurs.

Avant toute décision d’investissement, les investisseurs doivent lire attentivement le prospectus de base, les conditions définitives applicables et notamment la section intitulée « Avertissements ». Une décision d’investissement doit tenir compte de la situation personnelle de l’investisseur, de ses objectifs, de son horizon d’investissement et de sa capacité à supporter des pertes potentielles. Le cas échéant, il convient de solliciter un conseil indépendant en matière financière, fiscale et juridique.

Un avertissement détaillé sur les risques applicables aux ETP liés aux crypto-actifs est disponible à l’adresse suivante : www.bitwiseinvestments.eu/fr/risk-warning