Specialist crypto ETP supplier ETC Group has unveiled its third product, the LTCetc – ETC Group Bodily Litecoin ETC (ELTC GY).
Set to debut on Deutsche Börse Xetra on 14 April, the ETP will present institutional buyers with totally backed publicity to litecoin.
Litecoin, at the moment the world’s ninth-largest crypto asset by market cap, originated in October 2011 as an early spinoff from bitcoin. It’s much like bitcoin in that it has a set provide (programmed to be 4 occasions the eventual provide of bitcoin) and undergoes common block reward ‘halvings’.
The principle distinction between the 2 cryptocurrencies is that litecoin delivers a quicker block era time of two and a half minutes, in comparison with ten minutes for bitcoin. It’s this function that has helped established litecoin because the go-to cryptocurrency for customers looking for to conduct transactions rapidly.
Generally known as the silver to bitcoin’s gold, litecoin has grown by 390% up to now 12 months whereas bitcoin has rallied 670% over the identical interval (efficiency knowledge relative to the US greenback).
As with ETC Group’s current ETPs – the $1.3bn BTCetc – ETC Group Bodily Bitcoin (BTCE GY) and the $15m ETHetc – ETC Group Bodily Ethereum (ZETH GY) – ELTC is being delivered to market in partnership with London-based white-label issuer HANetf, which is advising on operations and taking lead accountability for product advertising and marketing and distribution.
Every unit of ELTC will likely be “bodily” backed by roughly 0.1 litecoins at launch, offering buyers with direct publicity to the cryptocurrency with the added oversight, safety, and liquidity of an ETP.
By investing within the ETP, buyers will have the ability to bypass the technical challenges of buying litecoin immediately from cryptocurrency markets corresponding to organising a digital pockets, managing cryptographic keys, or buying and selling on unregulated crypto exchanges.
The ETP is cleared via a central counterparty (CCP) system, versus bilateral settlement, decreasing the counterparty danger that market contributors are uncovered to. This function is important for institutional buyers that are usually prevented from buying and selling non-centrally-cleared devices.
The ETP comes with an annual price of two.00% and is tradeable in euros.
It’s the second immediately backed litecoin ETP to listing in Europe following the CoinShares Bodily Litecoin (LITE SW) which debuted on SIX Swiss Exchange earlier this month. LITE comes with an expense ratio of 1.50%.
Regulated, safe, liquid
Bradley Duke, CEO of ETC Group, mentioned: “The present financial uncertainty has underlined the attraction of crypto belongings for buyers as they provide alternatives for diversification from conventional belongings corresponding to equities and bonds, and robust hedging qualities in opposition to inflation. However it’s a crowded market with greater than 8,700 cryptocurrencies, making it troublesome for buyers to pick belongings and to retailer and handle them. Institutional buyers are demanding regulated crypto merchandise which might be safe, liquid, and central counterparty cleared, and ETC Group is constructing merchandise that adhere to the complicated and exacting requirements of the institutional investor.”
Hector McNeil, co-Founder and co-CEO at HANetf, added: “We’re excited to be supporting the continued growth at ETC Group and the launch of their third crypto ETC with the itemizing of ETC Group Bodily Litecoin ETC. ETC Group is firmly established as a market chief in providing funding merchandise centered on crypto belongings. The large success of their first product, BTCE, which reached over $1 billion in belongings in simply over seven months since itemizing demonstrates the rising demand for merchandise that allow buyers to keep away from issues in regards to the technical problem of shopping for and storing cryptocurrencies. ETPs are listed on a regulated trade and buyers purchase them via regulated brokerages. That is arguably probably the most sturdy solution to commerce and spend money on cryptocurrencies.”