Bitcoin and Ethereum ETPs Now Available on Bulgaria’s Stock Exchange

As per a report from money.bg, the Bulgarian Stock Exchange is looking into enabling crypto ETPs for its citizens.

While the country isn’t new to cryptocurrencies, a cryptocurrency-based exchange-traded product is definitely new to investors and will certainly attract newer investors into the market.

Bitcoin, Ethereum in Bulgaria

Through this listing, the Bulgaria Stock Exchange (BSE) will be able to offer its investors multiple choices for their interest to bet on these cryptocurrencies.

The stock exchange although made it clear the investors won’t be able to buy cryptocurrencies directly, but can only invest in its exchange-listed counterpart.

ЕТС (ехсhаngе-trаdеd соmmоdіtу) аnd ЕТN (ехсhаngе-trаdеd nоtе) are the instruments using which people will be able to invest.

As of now the four new ETPs that will be listed include ETC Issuance, VanEck ETP, 21Shares, and WisdomTree.

The report also added,

“Іn аddіtіоn tо thе ехсhаngе rаtе оf thе twо сrурtосurrеnсіеѕ, whеn іnvеѕtіng іn thеѕе іnѕtrumеntѕ, thеу ѕhоuld аlѕо bе саrеful аbоut thе аnnuаl fееѕ (ТЕR) – іn thе саѕе оf ЕТС Іѕѕuаnсе ВТСЕ, іt іѕ 2% еасh уеаr.”

The stock exchange made the right decision to list the ETPs at the right time as these exchange-traded products have been drawing in a lot of money this month.

According to data from CoinShares, the 21Shares ETF registered inflows of $31.5 million adding to the month’s total of $39.9 million.

Similar performance was visible by the ETC Group’s ETF as it marked $15.5 million worth of inflows. Although the month of January made a big dent in the ETF as its year-to-date outflows currently stand at $127 million.

Spot ETP Still a Dream

For the United States alone that is, as Europe recently received its first-ever 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 spot Bitcoin ETP proposals citing fraud and manipulation concerns. 

Although Bitcoin ETFs do exist in the country all of them are Futures based and not Spot based.

The difference between the two is that a Futures based ETP tracks the price of Bitcoin Futures contracts.

This allows investors who wish to trade BTC through regulatory-friendly mediums to bet on where the price might head. 

Spot ETPs on the contrary track the price of Bitcoin in real-time. This however handicaps investors’ ability to short Bitcoin directly. But investors can still instead short the ETF’s share prices, which acts in a similar manner.

Thus until SEC is yet to approve a Spot ETP, investors in the United States will have to suffice with the Futures exchange-traded funds.