According to a Bitcoinist report on February 26, Germany's second largest stock exchange, the Boerse Stuttgart, added a new reverse Bitcoin exchange traded product (ETP). This product, called 21Shares Short Bitcoin ETP, will be the first crypto ETP that allows traders to short Bitcoin.
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Can the world's first Bitcoin short ETP be sought after by investors in the halving market?
The Stuttgart exchange has just launched a new investment product for institutional and retail investors, allowing them to short bitcoin. This is the first in the bitcoin investment industry and the world's first tradable bitcoin short product.
21Shares Short Bitcoin ETP will be supported by the underlying assets at a 1: 1 ratio. This is the first Bitcoin financial instrument listed in ETP with an International Securities Identification Number (ISIN) and a German Securities Identification Number (WKN).
Its base product, BTC, will be kept by an independent custodian with a separate account. 21Shares is approved by the Swiss Financial Supervisory Authority (SFSA). This means that investors in Germany and other European markets can now short bitcoin when the price of bitcoin starts to fall.
21Shares was formerly known as Amun AG, and a complete set of ETPs provided by them will be migrated to the 21Shares brand. This Bitcoin short ETP will be fully regulated by Swiss law.
As the world's first Bitcoin short ETP, investors' response to the product will be interesting in the current upsurge of Bitcoin due to the halving of Bitcoin.
Euro market is innovating crypto products, US market stagnates
With the release of the new EU Anti-Money Laundering Order 5 (5AMLD), crypto businesses will no longer be discriminated against by banks, and they will need to be treated the same as other businesses.
European investors have been calling for a regulatory policy that is friendly to the crypto industry. We have seen that many EU countries have introduced policies and tax structures that are very friendly to the crypto industry, and have thrown olive branches to crypto startups. Crypto Valleys in Zug, Switzerland, Malta, and Portugal are good examples.
In contrast, in the United States, excessive regulatory and tax policies, coupled with regulatory uncertainty, have brought chills to the crypto industry. Startups agree that it will be easier to start a business in a friendlier and clearer regulatory environment.
Within the United States, investors and entrepreneurs are putting pressure on the US Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) to issue clearer and easier guidelines. This has driven new developments, such as the "safe harbor law" proposed by "crypto mom" Hester Pierce, which has received mixed feedback from the crypto industry. Some people think it's not strong enough and it's too late.
US regulators need to learn from their European counterparts, relax strict rules and allow innovation. New investment products like 21Short ETP are the crypto exposures investors are looking for on both sides of the Atlantic.