After filing for a BTC ETF in the US, Invesco launched in Europe an ETN. Deutsche Boerse, Germany’s stock market platform announced on November 29 Invesco’s ETN listing on Xetra trading platform. This product will be traded with the symbol of BTIC.
After listing at Frankfurt regulated stock market exchange, this ETN backed by BTC will get clearance through Eurex Clearing. Investors will face reduced risk because of central clearing of transaction settlements. ETF Stream, a publication focused on ETF, reported that BTC custody for BTIC is secured by Zodia, a crypto asset custodian of Standard Chartered. BTIC will be administered by Zodia’s co-investor Northern Trust. The Zodia platform launched in 2020 has registration with the UK’s Financial Conduct Regulator.
Index Sponsor CoinShares
CoinShares, a longtime Invesco partner will be the execution agent and Index sponsor for this new ETN. The BTIC price-performance will be delivered based on the core assets without fees. This news has come after Invesco decided not to file with the US SEC in October for an ETF based on bitcoin futures. The reason was to give investors better options for investments and not limit it to a BTC ETF. Another reason was to avoid risks related to contango bleed.
BTIC is targeted at institutional investors. It has wrapped exposure to BTC which has 42% share of digital asset market valued at $2trn. Zodia Custody will keep the custody of BTC needed for BTIC. The goal of its promoter is to offer a product closely resembling a standard ETF.