German Startup Aiming to List Bitcoin ETN on Frankfurt Stock Exchange

Iconic, a German fintech startup, is planning to list crypto-backed products on stock exchanges in Frankfurt and Luxembourg.

According to German business news agency Handelsblatt, the company has filed a prospectus to list Bitcoin-backed exchange-traded notes (ETNs) and is planning to list the products on the exchanges by this December.

“Financial institutions and investors have been asking for an easy way to invest in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and other crypto assets for many years. So far, they have not had an institutional product to do that,” Patrick Lowry, chief executive of Iconic, told the local news daily.

“Iconic has now developed a similar investment product in Europe and is pleased to be able to offer it on regulated marketplaces in Luxembourg and Frankfurt.”

Similar to exchange-traded funds (ETF), ETNs are also listed and traded on the exchanges. However, ETNs are unstructured products and act as a bond which can be held to maturity, bought, or sold at will.

Though based in Frankfurt, the company has approached Luxembourg's financial watchdog to regulate the upcoming derivative.

Per the report, the German startup will directly invest collected funds into Bitcoin, which then will be purchased by the European subsidiary of Coinbase.

The company is already operating one such crypto investment funds for wealthy clients in which the minimum entry amount is set at €100,000 (around $111,000).

ETN - an entry to ETF

Iconic is not the sole European player to enter the industry of issuing crypto derivatives. Stockholm-based XBT has launched a similar product in 2015, which has been listed on Nasdaq Stockholm exchange.

Meanwhile, SIX, a major Swiss stock exchange, has listed multiple crypto exchange-traded products (ETPs), allowing mainstream traders exposure to crypto investment.

However, regulators are still reluctant to approve a crypto-backed exchange-traded fund (ETF).

“Iconic has convinced both regulators and Deutsche Börse. The listing of their Bitcoin product on the Frankfurt Stock Exchange is a remarkable step [...] A true Bitcoin ETF Europe is thus a significant step closer,” Philip Sandner, head of the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term Center of the Frankfurt School of Finance and Management, added.