EQONEX Limited (NASDAQ: EQOS) (the Group), a digital assets financial services company, today marked the official launch of its Investment Products business with the listing of a Bitcoin Exchange-Traded Note (ETN) on the Deutsche Börse XETRA Exchange.
Following the approval from Germany’s Federal Financial Supervisory Authority (BaFin) for the ETN prospectus, the EQONEX Bitcoin ETN is the Group’s debut exchange-traded product, with a pipeline of crypto investment and structured products earmarked for launch in the second half of 2022.
The EQONEX Bitcoin ETN provides direct investment exposure to bitcoin via an exchange-traded, physically-backed product. Investors can trade in and out of the ETN via their existing brokerage accounts and will also have the benefit of being able to redeem the underlying bitcoin for free using a Digivault custody account. The EQONEX Bitcoin ETN is available only to German-resident investors.
The bitcoin underlying the ETN will be stored in the group’s Financial Conduct Authority (FCA) registered custody provider Digivault, which is one of only 35 exchange or custody providers to hold this accreditation.
EQONEX CEO Jonathan Farnell said, “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 crypto company. We are pleased our prospectus has met the discerning standards of BaFin to be eligible for listing on the XETRA exchange.”
“Germany makes an ideal, strategic launchpad for our Investment Products business, given its sophisticated and highly educated investment community. We see the German market as fertile ground for what is likely to be a growing suite of EQONEX exchange-traded products,” Jonathan said.
EQONEX is well positioned to offer an innovative suite of investment and structured products given the company’s ecosystem which encompasses an exchange, custody capabilities, and its focus on regulatory compliance and security.
Frank Copplestone, EQONEX Head of Investment Products said, “The launch of our Investment Product business is an important milestone for the company as we dedicate more attention and focus towards delivering a broader mix of investment opportunities to our clients across Germany and in time, to other international markets,” Frank said.
“Investors are looking for a range of ways to access digital asset investment opportunities, so we are excited to offer a product to German investors that provides direct bitcoin exposure, and is available on a regulated, globally recognized exchange”.
Distinct from some other issuers, EQONEX embeds an additional investor protection by holding the underlying physical bitcoin in a segregated account under a Security Trustee, ensuring it is not used for rehypothecation.
The bitcoin underpinning the EQONEX Bitcoin ETN is held in Digivault which means it is Chainalysis-tested to ensure that it is legitimate and has not been tainted by money laundering or criminal activity.
Vosper will lead business development, partnerships and sales strategy for the digital asset custody business