Europe is getting its first ETP based on a Morgan Stanley index
ETC Group, a digital asset-backed securities provider, announced Today, we announced the listing of Europe’s first index-based crypto ETP, based on the Morgan Stanley index.
The ETP is based on the MSCI Digital Asset Select 20 ETP and will be launched at Deutsche Börse XETRA in Germany in April. MSCI created an index earlier this month based on his ETC group information and capped each constituent at 30%.
MSCI Asset Select 20 ETP
The index excludes stablecoins, privacy tokens and memecoins and tracks the value of 20 “major digital assets” including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).
ETPs are physically backed and the underlying assets are deposited in cold storage according to the composition and weighting of the index. Investors with standard brokerage accounts can buy and sell products such as stocks and ETFs after listing.
ETC Group CEO and founder Tim Bevan said this is the first full-fledged wide market index ETP in the cryptocurrency market. Bevan said the index range makes the new ETP an ideal asset allocation tool for investors.
EU and ETP
Europe has long been fertile ground for various crypto exchange trading instruments, seeing the launch of the first ETP in 2015.
Since the launch of Bitcoin Tracker One, a BTC price tracking product, European exchanges in Switzerland, France, the Netherlands and Germany have each listed various digital asset ETPs. However, only a handful of these ETPs are index-based and none are based on the MSCI index.
Morgan Stanley Capital International is a leading provider of indices that serve as essential tools for benchmarking a wide range of assets around the world. An ETP based on the MSCI index is a notable advancement for the European cryptocurrency industry as it legitimizes the investor market away from traditional finance.
According to Stephane Mattatia, Head of Thematic Indices at MSCI, the cryptocurrency market is evolving rapidly, increasing investor demand for access to cryptocurrencies.