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ETC Group, a renowned organization that specializes in offering innovative, crypto-based securities, is planning to list its Litecoin (LTC) exchange-traded product (ETP) on the Deutsche Börse XETRA platform. A report unveiled this news on April 12, noting that the ETP is dubbed ETC Group Physical Litecoin ETC (LTCetc) and will trade under the ticker symbol ELTC. Reportedly, the company seeks to list LTCetc on April 14 if everything goes as planned.
According to the report, the ETP is designed as an asset-backed debt security, which will be marketed and issued by HANetf. The physical LTC is an institutional-grade product that will monitor the price of LTC and offer investors exposure to LTC. Per the publication, ELTC will be the first LTC central counterparty cleared product that XETRA lists.
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Explaining why ETC Group had decided to launch an LTC-based ETP, the firm’s CEO, Bradley Duke cited LTC’s stellar performance. He said the coin has gained 342% over the past year to become the ninth-largest cryptocurrency regarding market capitalization. Duke went on to note that this performance and the fact that most people refer to LTC as the silver to BTC’s gold has seen interest from institutional and retail investors swell.
A paradigm shift
According to Duke, the economic uncertainty at the moment is constantly wooing traditional investors into the crypto space. This is because the nascent sector offers vast opportunities for institutional investors to diversify their portfolios. On top of this, he noted that the crypto sector helps investors hedge against inflation. However, the industry currently consists of more than 8700 coins, which makes it difficult for investors to pick, store, and manage digital assets.
As such, ETC has dedicated itself to provide quality ETPs to help investors dabble in crypto. Per the publication, ETC Group believes that institutional investors are attracted to crypto products that are secure, liquid, and central counterparty cleared. The organization added that legacy markets will stay volatile for a while, creating a chance for investors to dip their toes in alternatives, such as crypto.
Confident in its decision to go all-in in crypto, the company said that the current crypto rally is underpinned by both retail and institutional investors.
Apart from ELTC, the company has a physically-backed BTC ETP dubbed BTCE. Similar to ELTC, BTCE sought to grant investors a safe and transparent way to invest in BTC. In the past month, the firm also rolled out an Ethereum (ETH) ETP.