ETC Group expands roster of crypto ETPs with Tezos ETC
Digital asset manager ETC Group has introduced their newest exchange-traded product (ETP), this time with the launch of XTZetc – ETC Group Physical Tezos under the primary ticker EXTZ.
The ETC (exchange traded commodity/cryptocurrency) is now available to investors across 16 EU countries through a listing on Deutsche Börse XETRA, Europe’s largest ETF trading venue.
EXTZ aims to be the lowest cost product providing regulated access to Tezos’ network token, whilst benefiting from the high quality, institutional grade security and custody, and 100% physically backed features that match ETC Group’s other ETC securities.
The company says it has been produced in response to strong demand from institutional investors to gain exposure to the performance of open-source protocol Tezos (XTZ), which is backed by a global community of validators, researchers and developers.
Tezos is a highly-scalable platform that supports smart contract functionality and the development of decentralised applications (Dapps). It uses a variant of the proof-of-stake protocol which offers token holders the opportunity to delegate their assets to a validator and earn staking rewards.
Tezos also applies a governance model that automatically evolves and upgrades itself to ensure stability. Among blockchain projects, Tezos’s consensus mechanism is touted to be one of the most energy-efficient and technically sound platforms.
5 new exchange traded cryptocurrencies (ETCs)
“This institutional-grade product is a sign of confidence from the financial industry in Tezos. Scalable and energy efficient, the Tezos blockchain is genuinely aligned with the challenges of technological growth and sustainable finance,” said Thibaut Chessé, Adoption Manager – France, Nomadic Labs.
Bradley Duke, founder and co-CEO of ETC Group added: “We’re responding to demand from institutional investors who’re looking to invest in Bitcoin and Ethereum challengers by adding the Tezos based ETC to our portfolio. Tezos has developed a solid reputation as a blockchain based platform used for the execution of smart contracts, cross-border payments, and decentralized apps. It’s on-chain governance model perhaps makes it one of the most democratic platforms in the crypto sector, and is increasingly popular amongst investors.”
ETC Group has recently expanded its roster of cryptocurrency exchange-traded products (ETPs) with five cryptocurrency digital asset exposures. The new crypto ETCs include Polkadot (PLKA), Solana (ESOL), Stellar (STLR), Tezos (EXTZ) and Cardano (RDAN).
Physically-backed, the XETRA listing brings Tezos ETC within particularly easy reach of investors in Germany, which now boasts some of the most crypto friendly tax laws in mainland Europe. Trading Tezos through an ETP structure removes the technical challenges associated with cryptocurrency such as setting up a wallet or trading or unregulated exchanges.