Xetra Launches First Ether ETPs: A New Era for Crypto Trading in Europe

A Game-Changer in Crypto Trading

Xetra, the leading electronic trading platform operated by Deutsche Boerse, is stepping up its game by launching its first Ethereum-based exchange-traded products (ETPs). This move is being heralded as a significant milestone for crypto trading in Europe as it opens doors for institutional investors eager to dip their toes into the world of Ether.

What’s on the Plate?

Starting Tuesday, investors will have the chance to buy into two fresh ETP offerings::

• ETC Group’s Ether exchange-traded commodity (ZETH): Approved by Germany’s Federal Financial Supervisory Authority (BaFin), this ETP promises a physically backed, central counterparty-cleared product on Ether, with crypto safely nestled under the watchful eyes of BitGo Trust Company.
• 21Shares’ Ethereum ETP (AETH): Riding the crypto wave, AETH joins the ranks and is set to capture investor interest alongside a Bitcoin Cash (BCH) ETP launching simultaneously.

Ethereum Joins the Party!

Prior to these announcements, Xetra already boasted a selection of four Bitcoin ETPs that include innovative products from established firms. With Xetra’s total trading volume representing about 90% of all German stock exchanges, this expansion into ETPs reflects a growing acceptance of cryptocurrency.

Institutional Confidence

Feedback from industry insiders reveals a wave of optimism. Laurent Kssis from 21Shares shares that being entrusted to launch these products is a leap forward, translating institutional confidence into more crypto offerings on Xetra.

The Regulatory Landscape

While the news is bright, there’s a cloud on the horizon. The expansion does not currently include the much-desired crypto exchange-traded funds (ETFs). According to Stephan Kraus of Deutsche Boerse, current regulations in the EU prevent the listing of single cryptocurrency ETFs. Instead, ETPs are categorized differently as legally defined debt instruments, not funds, making them a distinct option.

Looking Ahead

As the crypto market continues to evolve, the addition of ETPs could entice more investors to explore digital assets in a regulated environment. Deutsche Boerse’s Xetra platform is taking a leading role in making cryptocurrency more accessible to the masses—one Ethereum at a time!