BitcoinETI, an Exchange-Traded Instrument backed by assets, has been added by the Gibraltar Stock Exchange. This made BitcoinETI the first regulated product of Bitcoin on the territory of Europe. It is to start trading on both the Gibraltar Stock Exchange and the Deutsche Boerse of Germany this week. The instrument is to exclusively invest in the sphere of digital currency.
The Managing Director of the GSX Nick Cowan commented on the admission, saying that the GSX had always been focused on offering a variety of efficient and cost-effective solutions, which was exactly the reason why they decided to back BitcoinETI in its launch to the public markets.
Currently, people worldwide can use the web-based currency for making instant money transactions. Sending virtual currency is also free of charge, not to mention the fact that the transactions do not require to be scrutinised or approved by any third parties. In addition, a number of main online retailers accept it, which is a great advantage to customers who have chosen using such currency. To date, well above 200,000 money transactions are carried out on a daily basis.
Probably the biggest disadvantage of web-based currency is the fact that its value changes quite quickly. For example, three years ago – in late 2013 – the web-based currency value increased to more than $1,200, but then literally crashed after the Mt. Got Bitcoin exchange collapsed. Then, it has been stabilised and on July 25th it traded at around $655.
The Exchange-Traded Instrument BitcoinETI is issued by the Gibraltar-based company iStructure PCC Plc as a result of the collaboration of several stakeholders such as the Government of Gibraltar, the territory’s regulatory body – the Financial Services Commission, FinTech specialists Revoltura Limited that is a subsidiary of iStructure, and Argentarius ETI Management Limited.
After being launched, BitcoinETI will be available through various brokerages on the territory of Europe. When it comes to the US, where the regulation of Bitcoin is considered as more difficult, an approval for a proposed Bitcoin Exchange-Traded fund has been awaited for about three years now.
The Winklevoss Bitcoin Trust has been suggested by Cameron and Tyles Winklevoss. If it gets a regulatory approval, the Trust would become the first Exchange-Traded Fund ever launched by an entity based in the US and investing in Bitcoin only.
- Author
Daniel Williams
