As per a report from money.bg, the Bulgarian Exchange is looking to enable crypto ETPs for its citizens.
While the country is no stranger to cryptocurrencies, an exchange-traded product based on cryptocurrencies is certainly new to investors and is sure to attract new investors to the market.
Bitcoin and Ethereum in Bulgaria
Through this listing, the Bulgaria Stock Exchange (BSE) will be able to offer its investors multiple choices for their interest in betting on these cryptocurrencies.
The stock exchange even though it has made it clear that investors will not be able to buy cryptocurrencies directly, but can only invest in its publicly traded counterpart.
ЕТС (ехсhаngе-trаdеd соmmоdіtу) and ЕТN (ехсhаngе-trаdе nоtе) are the tools with which people will be able to invest.
For now, the four new ETPs that will be listed include ETC Issuance, VanEck ETP, 21Shares and WisdomTree.
The report also added:
“Іn аddіtіоn ехсhаngе rаtе о of the two сrурtосurrеnсіеѕ, whеnvеѕtіng іn thеѕе іnѕtrumеntѕ, Their goal should be to be aware of the importance of сrурtосurrеnсіеѕ, whеnvеѕtіng іn thеѕе іnѕtrumеntѕ, Their goal should be to be aware of the importance of сrурtосurrеnсіеѕ% "
The exchange made the right decision to list ETPs at the right time, as these exchange-traded products attracted a lot of money this month.
According to data from CoinShares, the 21Shares ETF recorded inflows of $ 31,5 million on top of the month's total of $ 39,9 million.
A similar performance was seen by the ETC group ETF, which posted $ 15,5 million in inflows. Although January made a big dent for the ETF, as its year-to-year outflows currently stand at $ 127 million.
Spot ETP? Still a dream
For the US alone, Europe recently received its first spot Bitcoin ETP after Fidelity announced the launch of its cheapest ETP in the world.
On the other hand, the Securities and Exchange Commission (SEC) continues to reject Bitcoin spot ETP proposals citing concerns of fraud and manipulation.
Although Bitcoin ETFs exist in the country, they are all Futures based and not Spot based.
The difference between the two is that a futures-based ETP follows the price of Bitcoin futures contracts.
This allows investors wishing to trade BTC through regulatory means to bet on where the price might go.
Spot ETPs, on the other hand, track the quotation of Bitcoin in real time. However, this hinders investors' ability to run out of Bitcoin directly. But investors can still go short on the ETF's share prices, which acts in a similar way.
So, as long as the SEC has yet to approve a Spot ETP, investors in the US will have to make do with futures exchange-traded funds.
