Singapore-based crypto exchange Eqonex has entered Europe’s digital assets investment market with the launch of a directly backed bitcoin ETP.
Crypto exchange Eqonex has launched a directly backed bitcoin ETP in Europe.
The EQONEX Bitcoin ETN (EQ1B GY) has been listed on Deutsche Börse Xetra with an expense ratio of 0.89%.
The ETP provides institutional investors with access to bitcoin through a liquid, regulated vehicle without the complexity of keys, digital wallets, or cryptocurrency exchanges.
It is 100% collateralized with actual bitcoin holdings that are stored in Eqonex’s FCA-registered custody provider Digivault.
The underlying bitcoin is Chainalysis-tested to ensure it has not been tainted by money laundering or criminal activity. It will also remain in custody at all times and will not be used for rehypothecation.
According to Eqonex, the launch marks the beginning of an extensive venture in Europe as the firm has a pipeline of crypto ETPs earmarked for launch in the second half of 2022.
Jonathan Farnell, CEO of Eqonex, commented: “The launch of our first exchange-traded crypto investment product is an important milestone for Eqonex as we strive to build a world-leading and highly trusted crypto company. Germany makes an ideal, strategic launchpad for our Investment Products business given its sophisticated and highly educated investment community. We see the German market as fertile ground for what is likely to be a growing suite of Eqonex ETPs.”
While the ETP has entered a crowded field of bitcoin ETPs in Europe, its expense ratio is at the cheaper end compared to existing products.
Its cheapest direct rival is the Global X Bitcoin ETP (BT0X GY) which has an expense ratio of 0.65%, while Europe’s largest bitcoin ETP, the $320 million BTCetc – ETC Group Physical Bitcoin ETP (BTCE GY), costs 2.00%.
Recently, Switzerland-headquartered 21Shares rolled out the world’s cheapest ETP providing directly backed exposure to bitcoin – the 21Shares Bitcoin Core ETP (CBTC SW) – which has an expense ratio of just 0.21%. The ETP’s low price tag is achieved by participating in collateralized lending agreements which serve to cover operational costs. Loans are executed through institutional-grade partners, are overcollateralized, and are monitored daily to protect the interest of the ETP’s shareholders.