Bridging the broker gap: Why it was time for us to enter the world of exchange-traded products

With Bitcoin once again topping $60,000 and the crypto economy gradually going mainstream, many one-time sceptics are becoming increasingly curious about the investment potential of cryptocurrencies - even the most traditional investors. 

Well, that’s actually no surprise to us. At Bitpanda, we always want to bridge the gap between digital assets and traditional exchanges - by empowering everyone to simply, seamlessly and effortlessly buy, hold and sell cryptocurrencies. We’re working around the clock to make digital assets accessible for all investors, now even through their established trading channels.  

Enabling new ways of portfolio diversification

Enabling new ways of portfolio diversification was the driving force behind our decision to enter the world of exchange-traded products, with an innovative twist. We think that investors choosing the traditional route should also be able to invest in cryptocurrencies, easily and without hassle via the channels they are already familiar with. 

Drum roll... We’re excited to introduce the Bitpanda Bitcoin ETC to all investors out there. It’s a fully-collateralised exchange-traded note, traded in euro, that tracks the performance of the underlying cryptocurrency - Bitcoin, in this case. It's a truly European product and the very first ETC with Euro as the base currency.

Diversification for modern portfolios

Given Bitcoin’s low correlation to traditional assets, investors can achieve significant benefits by diversifying their portfolios, with the perspective of higher returns. In a world of low yields, this becomes ever-more important. By integrating new, alternative investment products into investment portfolios, buy-side players can directly address their clients’ desire for innovation.

Bridging the broker gap

The best part: As an investor, you can simply buy and sell the ETC through your regular broker or bank. Your new asset will be available in your portfolio just like any regular stock or bond. 

Let’s dive a bit deeper into the “How?”. The Bitpanda Bitcoin ETC is listed on the Deutsche Boerse electronic exchange XETRA, Germany’s top trading venue for exchange-traded products, with more exchanges to come. Given its listing, the product is available to all investor types through their existing bank or broker. Therefore, with Bitpanda’s ETC there is no need for investors to sign up with a crypto exchange/digital investment platform or store complex digital wallet keys. 

The Bitpanda Bitcoin ETC can be bought and sold throughout the exchange’s trading hours. In addition to that, the highest liquidity standards and thus continuous trading are ensured by the designated, specialised sponsors on the exchange. In the background, a specialised market maker provides liquidity and exchanges your fiat currency for the relevant crypto-asset. An ETC creation order is then created and passed to the Issuer, who transfers the underlying crypto-assets into institutional-grade custody with a regulated custodian who then issues the ETC securities to your portfolio.

Full safety through 100% collateralisation

The Bitpanda Bitcoin ETC is backed with physical Bitcoin, safely stored in industry-leading cold storage with the custodian, who is registered with Austria’s Financial Market Authority (FMA) as well as the French Autorité des marchés financiers (AMF). This ensures full price replication and collateralisation for investor safety. Every note entitles the investor to a predetermined amount of crypto underlying, which is transparently published. 

This is just the beginning

The Bitpanda Bitcoin ETC is the first product of this new range, with more ETC products to follow soon. We keep our promises, we move fast. This is just the beginning. 

Bitpanda Issuance GmbH is the issuer of Bitpanda ETC.

Find out more about the Bitpanda Bitcoin ETC and invest now through your regular broker or bank.