An article about new XTB instruments introduced as an alternative to cryptocurrency ETFs for European investors. XTB has introduced three new ETPs (Exchange Traded Products) that allow investors to expand their exposure to the cryptocurrency market. These instruments, including the BTCetc Bitcoin Exchange Traded Crypto and VanEck Bitcoin ETN, allow investors to take positions in the cryptocurrency market. ETNs (Exchange Traded Notes) are exchange traded debt instruments linked to the credit risk of the issuer. The article also mentions bitcoin ETFs in the US and Europe, providing context for the new XTB instruments.
Bitcoin ETFs, which are breaking popularity records in the US, remain out of reach and European investors. However, XTB has unveiled a new instrument that will allow investors to expand their exposure to the cryptocurrency market.
On Monday, 19 February, three new ETPs (Exchange Traded Products) appeared in XTB's offer, thanks to which investors will be able to expand their exposure to the cryptocurrency market.
Traded Products), thanks to which investors will have the opportunity to take positions in the cryptocurrency market. Two of them relate to bitcoin itself and are instruments called Btcetc Bitcoin Exchange Traded Crypto (BTCE.DE) and VanEck Bitcoin ETN (VBTC.DE).The third new ETP in XTB's offering provides access to the 10 largest cryptocurrencies in terms of market capitalisation, and is the VanEck Crypto Leaders ETN (VT0P.DE).
Unlike cryptocurrency CFDs with a maximum leverage of 2:1, which have long been on offer at XTB, ETNs are on the same terms as equities and the ETF-y broker doesn't charge a commission for them for monthly client turnover of up to €100k (433k gold). However, ETNs do charge their own ongoing, distribution or management fees.

ETN (Exchange Traded Notes)

An ETN (Exchange Traded Notes) is a type of exchange-traded debt instrument that resembles government or corporate bonds. By purchasing an ETN, an investor lends money to its issuer, who promises to repay them with funds equal to the value of the certificates plus interest earned by the instrument they are tracking.
Unlike ETFs, ETNs have an expiry date, just like bonds. They are also linked to the issuer credit risk belonging to so-called unsecured bank securities. This means that in the event of the issuer's insolvency, investors cannot expect a refund from the bank Guarantee Fund.

BTCetc Bitcoin Exchange Traded Crypto (BTCE.DE)

BTCetc Bitcoin Exchange Traded Crypto (BTCE.DE) is authorised for trading on the Deutsche Börse exchange. The issuer of the instrument is ETC Group and the sale and distribution is handled by HANetf. Btcetc Bitcoin Exchange Traded Crypto charges 2% ongoing fees and 0.5% distribution fees.

VanEck Bitcoin ETN (VBTC.DE)

VanEck Bitcoin ETN (VBTC.DE) is just like its predecessor and trades on the German Stock Exchange. Its value is based on the MVIS Cryptocompare Bitcoin VWAP Close Index, which displays the bitcoin exchange rate. VBTC.DE (TER) has a total expense ratio of 1%.
VanEck Crypto Leaders ETN (VT0P.DE) to kolejny ETN notowany na Deutsche Börse. Its ter (total expense ratio) is 1.50%.

In recent weeks, we have regularly answered investors' questions about when it will be possible to invest in Bitcoin ETFs in Europe. We do not know the answer to this question, but we are confident that this type of instrument will be available with us from the first day of trading on European exchanges. Nevertheless, seeing the interest of investors in the cryptocurrency market, we decided to find an alternative," commented Philippe Kaczmajic, member of the XTB board.

It is worth noting that although bitcoin ETFs, which were allowed to trade in the US this year and helped the first cryptocurrency to break the psychological barrier of $50,000, are out of the reach of Polish investors, Europe already owns its own BTC ETF. We are talking about the Jacoby Bitcoin ETF, which was launched in the middle of last year on Euronext Amsterdam. However, the instrument is regulated by the Guernsey Financial Services Commission (GFSC) and is only available to professional traders from the UK and the Netherlands.