Neobroker Bitpanda launches Bitcoin-backed ETN

Austrian investing group Bitpanda has launched its first 'exchange-traded cryptocurrency', according to a statement.

The product — an exchange-traded note (ETN) — will track the price of bitcoin. It will be accessible via brokers and platforms such as ING and Postbank, and will be denominated in euros, meaning investors won't need to manage private keys or open an account with Bitpanda. The ETN is fully collateralized by bitcoin, which is kept in cold storage with a regulated custodian. 

"We are excited to introduce the Bitpanda Bitcoin ETC as a new way of trading and investing in crypto technology, underscoring our dedication to providing investors easy access to crypto now, and in the future," said co-founder and CEO Eric Demuth. "Issuing an entirely EU-based Bitcoin ETC with Euro as a base currency, we are able to offer exposure to an alternative asset class." 

Currently, Bitpanda's bitcoin-backed ETC is listed on Deutsche Boerse's electronic exchange XETRA, one of Germany's most popular platforms for exchange-traded products. It has plans to launch an Ethereum-backed ETC and an index ETC in 2022. 

The news comes as neobrokers further entrench themselves in the world of crypto. Most recently, Germany's Scalable Capital launched crypto trading tools and previously New York-based Public.com rolled out similar tools to trade digital assets. 

About Author

Tom is fintech reporter at The Block. Before joining the team, he was an editorial intern at the FT-backed platform Sifted where he reported on neobanks, payment firms and blockchain startups. Tom has a bachelors degree in International Relations and Japanese from SOAS, University of London.