EQONEX Limited has launched a physically backed Bitcoin ETN for German investors. The physical Bitcoin will be held by Digivault in a separate account. The company intends to create more products for investors that will be offered internationally.
According to a press release, German financial services company, EQONEX Limited, has launched its first investor product with a new physically backed exchange-traded note (ETN) on the Deutsche Börse XETRA exchange, Bitcoin Magazine reports. The EQONEX Bitcoin ETN allows German investors to use standard brokerage services to trade between assets, and also gives investors the ability to redeem actual Bitcoin for free with a Digivault custody account.
Digivault is a registered digital asset custody service provider registered with the Financial Conduct Authority (FCA) and is one of only 35 entities currently holding this accreditation.
While these services will be launched specifically for the German markets, EQONEX intends to create a more robust set of offerings for the international arena.
“Germany makes an ideal, strategic launchpad for our Investment Products business, given its sophisticated and highly educated investment community. We see the German market as fertile ground for what is likely to be a growing suite of EQONEX exchange-traded products,” EQONEX CEO Jonathan Farnell said.
Frank Copplestone, EQONEX head of investment products, echoed Farnell's sentiment when he said:
“The launch of our Investment Product business is an important milestone for the company as we dedicate more attention and focus towards delivering a broader mix of investment opportunities to our clients across Germany and in time, to other international markets.”
In addition, EQONEX aims to provide its investors with an additional layer of security through its custodial provider, Digivault, as the company will hold the physical Bitcoin in a segregated account, which guarantees the Bitcoin cannot be rehypothecated. In addition, EQONEX has worked with analytics company, Chainalysis, to ensure that the Bitcoin they hold has not been subject to money laundering or criminal activity.
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