21Shares to launch first centrally cleared short Bitcoin ETP on German Xetra

Leading Swiss crypto exchange-traded products (ETPs) issuer, 21Shares has informed that it is admitting the world centrally cleared Short Bitcoin ETP on German regulated marketplace, Xetra. The CCP clearing status is there to reinforce the concerns of many investors regarding security and clearing matters.

World’s first CCP cleared Short Bitcoin ETP on Xetra

Launched in 1997, Xetra is a Frankfurt-based trading venue operated by Deutsche Borse. In an announcement today, the ETP issuers said it will be launching the first centrally cleared Short Bitcoin ETP (SBTC) on the regulated marketplace starting September 1. The CCP clearing status offers a sense of security to investors against counterparty risk when trading SBTC.

The 21Shares official responsible for the application with Deutsche Boerse, Laurent Kssis, commented:

“We have lobbied carefully but vigorously with the exchange to be in a position to launch the world’s first centrally cleared short Bitcoin ETP on a regulated trading venue. The one missing trading product was to deliver a fully transparent financial instrument to capitalize on negative price movements within a complete regulated framework.”

Shorting Bitcoin (BTC)

The Short Bitcoin ETP is one other financial product that enables investors to gain from every downward movement on Bitcoin price. The listing of SBTC is thought to be a step towards mainstream adoption when it calls for hedging and protection. Besides, it will enable both retail and institutional investors an option to bet against the crypto when they are less optimistic. Four months ago, 21Shares launched a similar product, BTCSHORT or BTCS, which was a token meant to represent the inverse price of Bitcoin. This provides yet another option to earn from the cryptocurrency, especially when investors/traders are bearish at some point.