Exchange-traded fund giant Invesco is launching a spot Bitcoin product on the German Deutsche Borse.
The new product will be an exchange-traded note (ETN) 100% backed by “physical” holdings of Bitcoin, and aims to deliver the price performance of BTC, minus a fixed annual fee of 0.99%.
Digital asset management firm CoinShares will be acting as the sponsor of the index and the execution agent for the product.
Deutsche Borse announced the launch of the new ETN on its digital stock exchange Xetra.
“The Invesco Physical Bitcoin offers investors the opportunity to participate in the performance of the cryptocurrency Bitcoinin a simple way. The exchange traded note (ETN) physically backed by Bitcoin was admitted to the Regulated Market of the Frankfurt Stock Exchange and is centrally cleared via Eurex Clearing. Through central clearing, investors benefit from significantly reduced risks in the settlement of transactions.”
In a report from ETFStream, Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco said the company has been working on the product since the middle of 2018.
“In the last two to three years, we have been trying to structure a product that looked, from an institutional point of view, as close as possible to a traditional ETF like our gold structure, and that has been the driver of BTIC’s timeline.
“We have been pushed over the last couple of years by institutional clients and had to look at how we can access this space well. Most of the discussions we have with clients are not really about bitcoin itself but more about the access to bitcoin and how you get comfortable with segregation, how you get comfortable with valuation. Really, one of the strengths of ETPs is as an access vehicle.”
News of the new ETN comes shortly after Invesco withdrew their application with the U.S. Securities and Exchange Commission (SEC) for a futures-based Bitcoin ETF.
Invesco’s ETN will join a host of other crypto-related products on the Deutsche Borse, including Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Ethereum (ETH), Litecoin (LTC) , Polkadot (DOT), Solana (SOL), Stellar (XLM), Tezos (XTZ), and TRON as well as a Crypto Basket.