ETC Group, a Europe-based provider of digital asset-backed securities, is to list the first crypto ETP based on an MSCI index.
The ETC Group MSCI Digital Assets Select 20 ETP is expected to list on Germany's Deutsche Börse XETRA in April.
The ETP will track the performance of the MSCI Global Digital Assets Select Top 20 Capped Index. The index, which was developed by MSCI with ETC Group's input, was launched in early March this year, and represents the 20 leading digital assets.
These currently include cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Each individual constituent of the index is capped at a maximum of 30 percent. Stablecoins, privacy tokens and meme-coins, are excluded from the index universe.
Like other ETC Group products, the ETP will be physically-backed and the underlying digital assets will be deposited in cold storage custody, in accordance with the index composition and weighting.
Tim Bevan, Co-CEO and founder of ETC Group, said: "We are very proud to issue this new benchmark ETP. Tracking twenty constituents, this is the first genuine broad market index ETP in this exciting new asset class providing the ideal asset allocation tool to investors."
Bradley Duke, co-CEO and founder added: "This product signals the evolution of ETC Group's product offering from single asset access products toward products that provide investment management solutions while retaining the same uncompromising standards in quality and investor security."
Stephane Mattatia, head of thematic indexes at MSCI said, "The digital assets ecosystem is evolving rapidly and investor demand for access to this new asset class is growing. MSCI Digital Assets Indexes are developed with a systematic and process-oriented approach to help global investors gain transparency into this long-term, disruptive trend and enable them to make better investment decisions."
The ETC Group MSCI Digital Assets Select 20 ETP can, once listed, be bought and sold like shares or ETFs via the regulated stock exchange. All that is required is a standard securities account with a broker or bank. Liquidity in trading of the ETPs is ensured by authorised participants and market makers.
ETC Group has been created to provide investors with the tools to access the investment opportunities of the digital assets' and blockchain ecosystem. The company develops innovative digital asset-backed securities including ETC Group Physical Bitcoin (BTCE) and ETC Group Physical Ethereum (ZETH) which are listed on European exchanges including XETRA, Euronext, SIX, AQUIS UK and Wiener Börse.
