Crypto-asset investment manager Iconic Funds has introduced its first exchange-traded product with the launch of a directly backed bitcoin ETP in Germany.

Iconic Funds has launched a directly backed bitcoin ETP on Deutsche Börse Xetra.

The Iconic Funds Physical Bitcoin ETP (XBTI GY) has listed on Deutsche Börse Xetra and comes to market with approximately €10 million in assets.

It is tradeable in euros.

The ETP tracks the price movement of the world’s largest cryptocurrency as referenced by the NYSE Bitcoin Index, an index measuring verifiable bitcoin transactions occurring on Coinbase Exchange.

Each share of the ETP is fully backed by a coin entitlement of 0.0001 bitcoin at launch. Bitcoin holdings are kept in institutional-grade ‘cold storage’ with Fidelity Digital Assets and Coinbase Custody International both acting as custodians.

By investing in the ETP, investors are able to bypass the technical challenges of purchasing bitcoin directly from cryptocurrency markets such as setting up a digital wallet, managing cryptographic keys, or trading on unregulated crypto exchanges.

Patrick Lowry, CEO of Iconic Funds, said: “Iconic’s mission is to drive the adoption of crypto assets by creating trustworthy investment vehicles for investors to seamlessly gain exposure to the evolving asset class. We are elated to see our bitcoin ETP listed on Germany’s flagship market and look forward to working with our partners and regulators to bring more products forward for crypto-hungry investors.”

Michael Geister, Head of Crypto ETPs at Iconic Funds, added: “Iconic is a pioneer in the crypto-asset ecosystem due to its history as an investor in blockchain and crypto companies and as regulated manager of crypto investment products. It’s a natural step for Iconic Funds to expand its product range by offering physically backed crypto ETPs. Our crypto ETPs are designed to meet the highest standards in terms of security, trust, and cost-efficiency. We have teamed up with the most reputable partners to ensure the most robust structure and maximum level of transparency.”

The ETP comes with an expense ratio of 0.95%, matching the fee on the €270m WisdomTree Bitcoin ETP (WBIT GY), until now the cheapest bitcoin ETP on the European market.

Other bitcoin ETPs include the €930m BTCetc Bitcoin Exchange Traded Crypto (BTCE GY) at 2.00%; the €300m CoinShares Physical Bitcoin ETP (BITC SW) at 0.98%; the €260m 21Shares Bitcoin ETP (ABTC SW) at 1.49%, and the €160m VanEck Vectors Bitcoin ETN (VBTC GY) at 1.00%.