- ETC Group is set to list the ETC Group Physical Litecoin ETC (Ticker: ELTC) on 14th 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 14th 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.
[1]
Source: ETC Group
[2]
Source: BTCE AUM $1.12billion as of 22.02.2021
[3]
Source: Deutsche Boerse Group Turnover Report -February 2021
[4]
Source: Bloomberg as of 12.03.21. Trading volume 1,377,438 EUR
[5]
Source: Bloomberg as of 12.03.21
[6]
Source: Bloomberg/HANetf as of 24.03.21
Important information:
This article does not constitute investment advice, nor does it constitute an offer or solicitation to buy financial products. This article is for general informational purposes only, and there is no explicit or implicit assurance or guarantee regarding the fairness, accuracy, completeness, or correctness of this article or the opinions contained therein. It is advised not to rely on the fairness, accuracy, completeness, or correctness of this article or the opinions contained therein. Please note that this article is neither investment advice nor an offer or solicitation to acquire financial products or cryptocurrencies.
Before investing in crypto ETPs, potentional investors should consider the following:
Potential investors should seek independent advice and consider relevant information contained in the base prospectus and the final terms for the ETPs, especially the risk factors mentioned therein. The invested capital is at risk, and losses up to the amount invested are possible. The product is subject to inherent counterparty risk with respect to the issuer of the ETPs and may incur losses up to a total loss if the issuer fails to fulfill its contractual obligations. The legal structure of ETPs is equivalent to that of a debt security. ETPs are treated like other securities.
