Deutsche Börse to announce new market for Bitcoin exchange products

London-based investment firm ETC Group plans to announce new classes of securities based on Bitcoin technology in the German electronics market later this month.

The company announced on Tuesday that this electronic exchange (ETP), also known as the Bitcoin Exchange Crypto Exchange (BTCE), is the first in the world to remove cryptocurrency and will be set up on the Deutsche Börse Xetra marketplace in Frankfurt, Germany.

Central clearing is a way for financial companies to reduce the risk of participants in European derivatives trading and aims to improve safety. Crypto security is based on Bitcoin, and the holders of each share are entitled to hold an amount of Bitcoin. According to the company, the body of the Bitcoins is stored in an internet-connected freezer operated by BitGo, a company based in Palo Alto, California.

ETC Group CEO Bradley Duke said in an email to CoinDesk: "Traders can trade, invest and redeem Bitcoin with secure management."

“This is an ETP hybrid device with the same functions as the Data Transfer Protocol (ETC),” ETC said in an email.

The price of this new type of security should be slightly higher than the cost of traditional ETFs with a ratio of 2%, but most ETFs have a ratio of 0.5-0.7%.

ETC said: "It is not easy to present these products to regulatory authorities, but it has affected the cost."

In March of this year, German financial institutions (BaFin) announced that they would recognize cryptocurrency as a financial instrument. Securities have been transferred to the public from the HANetf platform along with other commercial products including cloud computing ETFs and marijuana ETFs.

Bitcoin-backed security will be listed in Germany and also licensed in the UK, Italy and Austria, allowing users in those countries to own or trade BTCE shares.