Every day that passes, worldwide demand for cryptocurrency-based financial products is growing around the world. Well, this type of product allows investors to place their capital in the performance of crypto assets, without having to acquire them directly. All this within a fully regulated market. Therefore, it is important news that new financial products on cryptocurrencies will be registered in Europe.
Regulated products for the crypto world
One of the big problems that the crypto world has faced since its birth is the lack of regulations in the sector. Well, although cryptocurrencies were designed as decentralized virtual currencies, outside the control of any central government. The truth is that the lack of regulations has been a stumbling block for the development of the sector.
And it is that, without these types of regulations, it is difficult for merchants to be able to accept cryptocurrencies as a means of payment. Just as it is impossible for institutional investors tied to certain regulations in their operation, to invest money directly in the cryptocurrency market. Well, they would be investing in a sector without any type of regulation or legal guarantee.
This has started to change in recent times. Thanks to the existence of companies like Grayscale, which allows its clients to invest in the crypto market indirectly. As well as changes in the attitude of regulatory institutions, more open to accepting the existence of cryptocurrencies in the financial market. What is allowing different companies to start offering financial products on cryptocurrencies in Europe and the United States.
New financial products in Europe
Thus, the provider of financial products for investors, 21Shares (formerly known as Amun), recently announced that it would be registering three new ETPs (publicly traded products) based on cryptocurrencies in Europe. Which would begin to be listed on the Euronext Paris stock exchange as of this Tuesday, June 1.
The first of these ETPs will provide investors with exposure to the Bitcoin market, while the second will do the same with Ethereum. Finally, the third product will allow those who want to invest short on the price of Bitcoin. Covering with this the main markets of interest for traditional investors from Europe in the crypto world.
21Shares already has experience launching these types of financial products. Well, in the past it has launched cryptocurrency-based ETPs in Switzerland, Germany and Austria, now expanding to the French market thanks to the significant demand for crypto-asset-related products that exists there and throughout Europe.
“These mainstream products will allow investors to diversify their portfolios by adding assets that we believed in before many others and that we continue to believe are essential for good portfolio allocation.” Commented Laurent Kssis, Director of ETP’s at 21Shares.