Europe’s first bitcoin ETI listed in Gibraltar

The Gibraltar Stock Exchange has approved the listing of BitcoinETI, an asset-backed exchange traded instrument, that is invested exclusively in bitcoin, making it the first European regulated product for this new type of digital currency.

The Bitcoin Exchange Traded Instrument (ETI) was approved for admission to listing on GSX on 22 July and will be co-listed on the Deutsche Boerse this week, under the symbol “BTCETI”.

Nick Cowan, managing director of the Gibraltar Stock Exchange, welcomed BitcoinETI as “Europe’s first publicly-traded bitcoin investment vehicle”. BitcoinETI will be issued by iStructure PCC PLC, a Gibraltar based company.

In a statement, the company said that the issue is the result of a close partnership between a number of stakeholders in Gibraltar including GSX Listing Member and securitisation specialist Argentarius ETI Management Limited, Gibraltar based FinTech specialists Revoltura Ltd (an iStructure PCC PLC subsidiary) the Government of Gibraltar, and Gibraltar’s regulator the Financial Services Commission.

Bitcoin as a new asset class

Revoltura Limited, the sponsor of BitcoinETI said that it believes the controversial new style digital currency will be an asset class that will find its way into many future portfolios.

“Bitcoin’s annual growth in 2015 was 30% and as of July 2016 the growth year to date is another 50% and importantly, the daily trading volume is around €1bn” said Ransu Salovaara, Revoltura’s chief executive.

“By listing the ETI on the Gibraltar Stock Exchange, which is an EU regulated market, we are able to bring a high-level of transparency and liquidity to investors,” he said. “BitcoinETI is available through regulated brokerage firms across Europe and settlements are handled through Clearstream/Euroclear, just like any other securities

Exchange Traded Instruments

The structurer and arranger of BitcoinETI is Argentarius ETI Management, which provides European securitisation solutions to investment managers through new models of structured finance.

Chief executive Andreas Woelfl, said: “ETI is a stock exchange traded security that is backed by an underlying asset or a basket of assets and delivers the delta one performance of the underlying. “European sophisticated investors such as asset managers, pension funds, and private bankers have now the possibility to capture the performance of Bitcoin through an EU stock exchange”.

The new Bitcoin ETI forms part of a series of early initiatives that Gibraltar hopes will establish the jurisdiction as a virtual currency hub.

Revoltura added that it plans to roll out and list further digital currency and disruptive technology instruments in the near future.

This article was first published on InvestmentEurope‘s sister publication, InternationalInvestment.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

Read more from Adrien Paredes-Vanheule

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