The cryptocurrency industry continues along the road to legitimization at breakneck speed with the development of new crypto-focused exchange-traded products (ETPs) that track the value of various cryptocurrencies.
Just days after Switzerland’s leading stock exchange SIX launched an XRP ETP (AXRP), Germany’s second-largest stock exchange, Boerse Stuttgart, launched new exchange-traded products (ETPs) that track Litecoin (LTC) and Ripple’s XRP.
According to the press release by XBT Provider, the company who issued the newly listed exchange-traded products, the ETPs are available for trading today, April 4.
Per the press release, Boerse Stuttgart is a wholly owned subsidiary of Swedish exchange Nordic Growth Market (NGM), which has operations across Sweden, Norway, Denmark, and Finland. Through these operations, Boerse Stuttgart reported trading volumes of 71.2 billion euros in 2018.
Newly Listed XRP and LTC-Based ETPs by XTB Provider
XBT Provider, a CoinShares company based in Sweden, previously launched Bitcoin (BTC) and Ethereum (ETH) exchange-traded products on the Nasdaq Stockholm exchange in 2015 and 2017 respectively. The company’s latest ETPs are trading on Boerse Stuttgart, and are only available to European investors.
Per the press release, Ryan Radloff, CEO of CoinShares, parent company to XBT Provider, said in a statement:
“This is an important moment for traditional investors and the crypto community alike as LTC and XRP now, effectively, have an ISIN number… For traditional investors who are interested in trading, and already have accounts with brokers such as Avanza or Nordnet, but may not care to set up new accounts with new, often unregulated, crypto exchanges, two new crypto assets are now available, this is another important step in the professionalization of the infrastructure around this asset class.”
As with XTB Provider’s earlier crypto ETP products, the tracking certificate for both the XRP and LTC ETP represents a predetermined amount of the crypto asset and tracks a composite index of each. Upon purchasing an ETP certificate on the exchange, it is hedged with the corresponding underlying asset 1:1.
Overall, the crypto industry is enjoying greater legitimization, which will ultimately lead to greater adoption, as more and more crypto-related trading products get brought to market. If the entire investment industry opens their eyes to what’s going on in crypto, the institutional FOMO will be like nothing we’ve seen before.
Do you think these crypto ETPs are bullish for the overall state of the cryptocurrency market? Let us know what you think in the comment section below.
