Last Updated: 13 July 2022
EQONEX Limited is launching a new German bitcoin fund. The company is launching a so-called bitcoin ETN.
A New Physically Backed Bitcoin ETN Just Launched In Germany. https://t.co/RO11yW6Azk
— crypto innovation (@innocrypto2018) July 12, 2022
ETN stands for Exchange Traded Note. The purpose of these financial products is relatively simple: private investors should be able to invest in the underlying product more easily. In this case, it is a fund that is backed by real bitcoin. This was stated in a press release.
Exchange for bitcoin
A share in the fund is instantly convertible to bitcoin. That is the simple promise. In practice, this means that investors on traditional (stock) exchanges in Germany can now gain exposure to bitcoin.
It is not the same as buying and storing bitcoin yourself. But investors who are purely looking for the price action and are not on crypto exchanges can tread here.
Investors with EQ1B shares can claim physical bitcoin through Digivault. That is a company that specialises in the storage of bitcoin. They have permission from the German regulators to do so.
Not only in Germany
EQONEX hopes to expand beyond Germany with their fund eventually. According to director Jonathan Farnell, Germany is a perfect starting point. He refers to the positive investor culture in the country. They see Germany as an ideal starting point for a ‘growing number of EQONEX products.’
Like many other funds, they are trying to tap into a new group of investors here. In Germany, EQONEX faces competition from many different funds and banks. For example, the major German bank, Commerzbank, recently applied for a licence to trade bitcoin.