German Bitcoin ETN Reaches $1 Billion

BTCetc (BTCE), the biggest bitcoin stock traded product on Germany’s biggest stock exchange, Xetra, has surpassed $1 billion.

That’s a 2.5x increase over just last month when BTCE stood at about $400 million in market cap.

All bitcoin ETNs on Xetra were $600 million in January, now just BTCE has gained $1 billion by itself.

They hold 18,131.197 bitcoin, worth about $1 billion, with each share bought being backed by bitcoin and is redeemable for bitcoin.

The began trading just this summer with it approved by BaFin, the German financial regulator. At the time they said:

“BTCE is structured as an ETC that is physically backed by Bitcoin. Each unit of BTCE gives the holder a claim on a predefined amount of Bitcoin – a structure very similar to physically backed gold exchange traded commodities, and allows investors the option for redemption in Bitcoin.”

They’re the biggest in Europe after the XBT Provider products and seem to be growing fairly quickly, in part presumably because they have first class access to European traditional finance.

Currently they trade at about €45 per share, which translates to $55, with bitcoin’s price currently at about $55,000.

Making them a potential avenue for European institutional investors as well as individuals holding pension or stock portfolios to invest in bitcoin with tax benefits as a hedge and diversifier.

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