Invesco introduces spot Bitcoin ETN on Deutsche Borse

Invesco is introducing a spot BTC exchange-traded note (ETN) in Europe, only days after dropping its application for a BTC futures ETF
Invesco is introducing a spot BTC exchange-traded note (ETN) in Europe, only days after dropping its application for a BTC futures ETF

Invesco is introducing a spot Bitcoin (BTC) exchange-traded note (ETN) in Europe, only days after dropping its application for a Bitcoin (BTC) futures exchange-traded fund (ETF) in the United States.

Deutsche Boerse, the German stock exchange, announced this Monday that the Invesco Physical Bitcoin ETN would be listed on its digital stock exchange, Xetra. BTIC will be the ticker symbol for the new product trading.

The new ETN product, which has been admitted to the Frankfurt Stock Exchange’s regulated market, is physically backed by BTC. The Release says that the investors will benefit from majorly reduced risks in transaction settlement through central clearing via Eurex Clearing.

As TheCoinRise reported, the executive officer of the company recently disclosed the reasons why Invesco dropped BTC futures ETF plans saying that the company is dedicated to providing investors with better investment options instead of just being 100% BTC futures ETF.

Gary Buxton, Invesco’s index strategies and ETF head, stated:

“Physical bitcoin is a more observable marketplace. One of our concerns was the depth of synthetic liquidity as well as what that may do to valuations over time, and that is something we were not wholly comfortable with. Invesco has been working on the product since the middle of 2018.”

CoinShares will assist Invesco

The known partner of Invesco, CoinShares, the European digital asset manager giant, will be the execution agent and index sponsor for the new ETN. BTIC will be tracking the CoinShares’ Bitcoin Hourly Reference Rate index to deliver the performance on the underlying asset.

Before this, as TheCoinRise reported, the asset management giant also launched two exclusive ETFs, which attracted the eyes of the industry.

Invesco entered the crypto exchange-traded products (ETP) of European industry when the Deutsche Boerse signaled its activity range expansion of the supported crypto derivatives products across the exchanges.

Both ETFs and ETNs track an underlying asset. However, an ETN is more like a bond, whereas ETF presumes investment in a fund that holds the assets.