An asset-backed Exchange Traded Instrument which has invested exclusively in Bitcoin, BitcoinETI, has become the first European regulated product for the leading digital currency after it was approved for admission to listing on the Gibraltar Stock Exchange GSX on 22 July 2015, the Gibraltar-based private limited company has announced.
According to information on its website, BitcoinETI offers professional investors exposure to Bitcoin as it trades in Euro charging 1.75% as management fees on a minimum order size of €100,000.
The ETI, sponsored by Gibraltar based FinTech specialists Revoltura Ltd, will be co-listed on Deutsche Börse this week under the symbol ‘BTCETI’. It enables sales in all 31 EEA countries and Switzerland and is available through any regulated brokerage firm.
Revoltura works closely with partners in Malta and Gibraltar to develop investment products that are fully compliant with financial market legislation and easily accessible through regulated brokers across Europe.
BitcoinETI is issued by a Gibraltar-based company, iStructure PCC PLC, based on a partnership between Revoltura, the Government of Gibraltar, the Financial Services Commission (Gibraltar’s regulator) and securitisation specialist Argentarius ETI Management Limited. Its Bitcoin custodian is Coinbase.
In his explanation, the CEO of the structurer and arranger of BitcoinETI, Argentarius ETI Management, Andreas Woelfl, says an ETI is a stock exchange traded security that is backed by an underlying asset or a basket of assets and delivers the delta one performance of the underlying.
He stated in a release that the ETI will provide European investors such as asset managers, pension funds, and private bankers with flexible securitisation solutions and the opportunity to capture the performance of Bitcoin through an EU stock exchange with new models of structured finance.
ETIs are backed by and linked to performance linked bond units issued by a Special Investment Vehicle (SIV) managed by authorised asset managers.
Units can be purchased by suitable investors through their normal/standard broker relationships so the trade and settlement process is transparent and simple for all parties.
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