ETC Group predicts ‘more products and innovation’ following new German law on institutional investment in cryptocurrencies
Bradley Duke, Founder of BTCetc Bitcoin Exchange Traded Crypto (BTCE) and CEO of ETC Group
ETC Group, one of Europe’s leading providers of crypto ETCs, is forecasting more product launches and innovation in the wake of a new German law allowing increased institutional investment in crypto assets.
Under the law, which came into effect on August 2nd Spezialfonds – also known as special funds – can hold up to 20% of their assets in cryptocurrencies potentially paving the way for wider mainstream acceptance of Bitcoin and other crypto assets by pension funds and insurers in Germany. Tax laws can change and investors should seek independent tax advice.
ETC Group believes the impact of new investment rules for Spezialfonds, which currently hold around $2.1 trillion of assets, will not be immediate as it will take time for investors to become comfortable with cryptocurrencies and regulated asset products such as ETPs, but the new rules will boost demand.
ETC Group is the issuer behind BTCetc -ETC Group Physical Bitcoin (BTCE), and is one of the leading providers of crypto ETPs within Europe. The products are listed on multiple exchanges across Europe, and are distributed by HANetf in all major European jurisdictions.
The company’s physical Bitcoin ETC under the ticker BTCE was one of the top exchange traded product (ETP) performer for inflows, daily turnover and spreads among eight Bitcoin ETPs in Q2 in Europe . It has subsequently launched Ethereum and Litecoin ETCs in 2021, ETHetc – ETC Group Physical Ethereum and LTCetc – ETC Group Physical Litecoin respectively.
German private investors in either of the crypto ETPs issued by ETC Group and distributed by HANetf will not have to pay tax on profits arising from such investments after a minimum holding period of one year, due to the full physical replication of each ETC and the investor’s ability to physically redeem them. Tax laws can change and investors should seek independent tax advice.
Bradley Duke, Founder of BTCetc Bitcoin Exchange Traded Crypto (BTCE) and CEO of ETC Group said:
“I believe issuers will respond to increased demand with more products and innovation in the space. The German regulators are taking a pragmatic and forward looking approach. They have recognised that digital assets are here to stay and have become an important sector for many investors.”
Source : ETFWorld.co.uk