EQONEX Limited (NASDAQ: EQOS) (the Group), a digital asset financial services company, marked the official launch of its investment products business with the listing of a Bitcoin Exchange-Traded Note (ETN) on Deutsche Borse XETRA Exchange.
Following the approval by the German Federal Financial Supervisory Authority (BaFin) of the ETN prospectus, the EQONEX Bitcoin ETN is the first exchange-traded product of the group, with a pipeline of crypto investments and structured products whose launch is scheduled for the second half of 2022.
The EQONEX Bitcoin ETN provides direct exposure to bitcoin investments through an exchange-traded and physically backed product. Investors can trade in and out of the ETN through their existing brokerage accounts and will also have the benefit of being able to redeem the underlying bitcoin for free using a Digivault deposit account. The EQONEX Bitcoin ETN is only available to investors residing in Germany.
The bitcoin underlying the ETN will be stored at Digivault, the group’s Financial Conduct Authority (FCA) registered custodial provider, which is one of 35 exchange or custodial providers to hold this accreditation.
EQONEX CEO Jonathan Farnell said, “The launch of our first exchange-traded crypto investment product is an important milestone for EQONEX as we strive to build a leading and highly trusted crypto company. We are delighted that our prospectus has met BaFin’s demanding standards to be eligible for listing on the XETRA exchange.
“Germany provides an ideal strategic launch pad for our Investment Products business, given its sophisticated and highly skilled investor community. We see the German market as fertile ground for what is likely to be a growing range of EQONEX exchange-traded products,” Jonathan said.
EQONEX is well positioned to offer an innovative suite of investment and structured products given the firm’s ecosystem which includes an exchange, custody capabilities and its focus on regulatory compliance and security.
Frank Copplestone, Head of Investment Products at EQONEX, said: “The launch of our investment products business is an important milestone for the business as we dedicate more attention and focus to providing ‘a wider range of investment opportunities to our clients across Germany and over time, for other international markets,’ Frank said.
“Investors are looking for a range of ways to access investment opportunities in digital assets, so we are delighted to offer German investors a product that provides direct exposure to bitcoin and is available on a regulated exchange globally. recognised”.
Distinct from some other issuers, EQONEX incorporates additional investor protection by holding the underlying physical bitcoin in a segregated account under a security trustee, ensuring that it is not used for rehypothecation.
The bitcoin underlying the EQONEX Bitcoin ETN is held in Digivault, which means it is tested by Chainalysis to ensure it is legit and has not been tainted by money laundering or criminal activities.
EQONEX Limited (NASDAQ: EQOS) is a technology-driven digital asset financial services group that provides institutional-grade infrastructure and a full suite of trading, custody and asset management solutions to its clients. The Group’s digital asset ecosystem has been designed to meet the needs of institutions and individuals with the same degree of regulatory oversight and security they are accustomed to in traditional financial markets. The EQONEX ecosystem primarily encompasses EQONEX Exchange, a digital asset exchange; Digivault, an FCA-accredited hot and cold digital asset custodian; and Bletchley Park Asset Management, a fund of crypto-hedge funds.