Deutsche Börse expands range of centrally cleared ETNs

Deutsche Börse is set to expand its centrally cleared crypto offering with Ethereum and Bitcoin Cash, hosted on its electronic trading platform Xetra. The Frankfurt-based marketplace organiser hopes that its newly revealed crypto ETNs will offer fluid access to the performance of cryptocurrencies, enhanced with physical backing.

Exchange Traded Notes (ETNs) issued by ETC Group and 21Shares on the cryptocurrencies Ethereum and Bitcoin Cash will be available for the first time to investors on Xetra, starting from today. These new products are listed on the Regulated Market of the Frankfurt Stock Exchange.

Stephan Kraus, Head of Deutsche Börse’s ETF segment, said:

Stephan Kraus, Deutsche Börse

Stephan Kraus

Cryptocurrencies are a rapidly growing market segment. With the expansion to Ethereum and Bitcoin Cash, we are now offering further investment opportunities to trade crypto products efficiently in a regulated on-exchange environment. This means investors no longer have to turn to unregulated crypto venues or set up their own crypto wallets.

Deutsche Börse has also added that central clearing helps provide reduced risks and settlement efficiencies.

Deutsche Börse

Kraus added:

Central clearing of the products significantly reduces the settlement risks and thus enables many professional investors to invest in crypto products.

All clearing is set to be dealt with by Deutsche Börse Group’s central counterparty, Eurex Clearing.

Deutsche Börse launched the world’s first centrally cleared Bitcoin ETN on Xetra back in June 2020, and since then, the product has been significantly traded by both institutional and private investors. The product also recently saw itself as the highest-volume product in the ETP & ETF segment on Xetra across a number of days.

Working as an electronic trading platform Deutsche Börse’s, Xetra is currently one of Europe’s largest trading platforms and is reported to account for around 90% of the German stock exchanges’ total trading volume. As it stands, the platform lists over 2,700 tradable securities. The product offering in Deutsche Börse’s ETF & ETP Segment presently comprises a total of 1,639 ETFs and 202 ETNs and ETCs, and has an average monthly trading volume of around 16.5bn euros.

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