Bitpanda is expanding its product range and bringing a new Bitcoin ETC to Deutsche Börse. In the future, the company plans to add more ETC products to provide access to cryptocurrencies to even more traditional investors.
With the introduction of Bitcoin ETC (exchange traded cryptocurrency) I would like to Bitpanda make an extra contribution to connect the crypto market with the classic stock market.
ETCs are exchange-traded cryptocurrencies that track the price of Bitcoin or another cryptocurrency. Each ETC is physically deposited 100 percent with the underlying asset and can be traded on an exchange, similar to stocks. This gives investors a safe and liquid way to trade cryptocurrencies.
The advantage of ETCs is that, unlike a direct investment in Bitcoin and Co., you don’t need to have any prior technical knowledge to set up a crypto wallet. Investors only need a crypto wallet if they want to exchange their ETC products for the deposited crypto currency. ETC issuers keep Bitcoin in safe custody and ensure that its origin meets strict know-your-customer procedures and anti-money laundering standards. Also, taxes are paid automatically with ETC and investors don’t have to worry about the often complicated tax requirements for cryptocurrencies.
However, the downside is that you can’t store the physical currencies yourself – a core value proposition of Bitcoin.
“Bitcoin and company have gained enormous traction”
The Bitpanda Bitcoin ETC can be traded in euros on the electronic exchange XETRA. The product is available to investors through their existing bank or broker.
With the introduction of Bitcoin ETC, Bitpanda wants to make it even easier to get into cryptocurrencies, says Bitpanda CEO Eric Demuth.
The introduction of Bitcoin ETC and other “Bitpanda Crypto Tracker” represents the next logical step for us to harness the power of cryptocurrencies, digitized assets, and blockchain technology, and develop simple financial products that are accessible to all. We hope investors will take advantage of the new earning potential with Bitpanda Bitcoin ETC and diversify their portfolios.
Demuth told BTC-ECHO that he assumed that Bitcoin ETC will primarily appeal to traditional investors who want to diversify their portfolio and gain access to the world of cryptocurrencies. Furthermore, his company plans to bring more ETC products to market in the future so that traditional investors can also have access to a wide range of cryptocurrencies.