Boerse Stuttgart, Germany’s second-largest stock exchange, has added a new inverse Bitcoin Exchange Traded Product (ETP). This will be the first crypto ETP, called 21Shares Short Bitcoin ETP, which allows traders to short Bitcoin.
World’s first Bitcoin short product, will the halving leave investors rekt?
Boerse Stuttgart has just introduced a brand new investment product for institutional and retail traders, which will allow them to short Bitcoin. This is a first for the Bitcoin investment industry and the first short product available in the world.
The 21Shares Short Bitcoin ETP will be backed by the underlying asset at 1:1. It is the first Bitcoin financial instrument wrapped as an ETP with an International Securities Identification Number (ISIN) and Wertpapierkennnummer (WKN).
The underlying BTC will be custodied by an independent custodian with segregated accounts. 21Shares is approved by the SFSA, the Swiss Financial Supervisory Authority.
This means investors in Germany and other European markets can now get short exposure on BTC when the prices start to dump.
21Shares was formerly known as Amun AG, and they offer a full suite of ETPs which will be migrating over to the 21Shares brand. This Bitcoin Short ETP will be fully regulated under Swiss law.
As the world’s first Bitcoin Short ETP, with the current bullish hype surrounding the halving, it will be interesting to see what the response towards this product will be from investors.
Euro markets are innovating crypto, US markets stall
With the release of the new 5AML EU anti-money laundering guidelines, crypto businesses can no longer be discriminated against by banks. They will need to be treated the same as any other business.
European investors have been crying out for crypto-friendly regulation, we have seen quite a few EU nations introduce crypto-friendly policies, tax structures, and extend the olive branch to crypto startups. Crypto Valley in Zug, Malta, and Portugal, come to mind.
In the US, overzealous regulation and uncertainty about tax policy and regulatory enforcement have put a chill on the crypto industry. Startups have decided it is easier to jurisdiction shop and start in a friendlier and more well-defined climate.
Domestically both investors and entrepreneurs have pressured the SEC and IRS to issue clearer guidelines that are easier to comply with. This has led to certain new developments like Hester Pierce’s proposed safe harbor law, which has met mixed feedback from the crypto industry. Some wonder if it is too little, too late.
US regulators need to take a page from their European counterparts and relax the strict rules to allow for innovation. New investment products like the 21Short ETP are the type of crypto exposure investors are looking for on both sides of the pond.
Do you think Boerse Stuttgart’s new short Bitcoin ETP is bullish for the leading cryptocurrency? Add your thoughts below!
Images via Shutterstock