Digital assets financial services company, EQONEX, has released a new product to the market that may excite large German investors who were waiting for a regulated way to buy Bitcoin. According to the press release, EQONEX has started offering a physically-backed Bitcoin ETN (exchange-traded note) on the Deutsche Borse XETRA Exchange for all German-resident investors.
The Bitcoin ETN by EQONEX will be the first exchange traded product of this kind for the company which will provide direct exposure to Bitcoin and will be stored by Digivault. Moreover, investors will have the chance to redeem the underlying Bitcoin for free from Digivault, should they want to.
EQONEX CEO Jonathan Farnell states:
The launch of our debut exchange-traded crypto investment product is an important milestone for EQONEX as we strive to build a world-leading and highly trusted company. We are pleased our prospectus has met the discerning standards of BaFin to be eligible for listing on the XETRA exchange.
Farnell also explained that the company chose Germany because he believes that the country is an ideal, strategic launchpad for the future of EQONEX and more of its exchange-traded products, since it has a highly sophisticated investor community.
EQONEX Goes Above and Beyond
EQONEX is approved and regulated by Germany’s Federal Financial Supervisory Authority (BaFin), and all of their Bitcoin will be stored by Digivault.
Digivault is a custody provider registered by the Financial Conduct Authority (FCA) and is one of only 35 exchange and custody providers that was given a license by the FCA. EQONEX also ensures that the underlying physical Bitcoin is held under a Security Trustee which means that no party will be able to rehypothecate the funds.
Additionally, since Digivault is collaborating with Chainalysis, blockchain analysis firm, EQONEX states that all Bitcoin stored for their investors is not “tainted” by any form of criminal activity such as money laundering.