A bitcoin
exchange-traded product (ETP) that generates yield from decentralized finance (DeFi) markets has debuted on Tuesday, in what issuer Fineqia calls a primary of its sort.
The Fineqia Bitcoin Yield ETP (YBTC), listed on the Vienna Inventory Alternate, targets a 6% annual yield by deploying investor capital into DeFi methods. It’s issued by Fineqia’s Liechtenstein-based subsidiary and suggested by Psalion Yield, a digital asset funding agency centered on blockchain-based yield.
In contrast to current crypto yield ETPs that depend on derivatives or structured notes, YBTC maintains one-to-one publicity to bitcoin whereas producing returns straight from DeFi protocols.
“It permits buyers to earn extra BTC whereas they maintain it, combining long-term conviction with compounding returns, all inside a regulated wrapper,” mentioned Fineqia CEO, Bundeep Singh Rangar.
The ETP additionally helps in-kind transfers, that means that digital asset holders can contribute BTC on to the product with out the necessity to first convert into money incurring a taxable occasion.
YBTC arrives at a time when investor curiosity in crypto-focused investments is rising. These funding merchandise has introduced digital property nearer to conventional buyers, permitting them to spend money on digital property in a well-known means via brokerage accounts with out the necessity of crypto wallets and blockchain transactions.
Bitcoin exchange-traded merchandise loved speedy progress over the previous yr and have devoured up $150 billion of property, Fineqia mentioned.
Learn extra: BlackRock to Checklist Bitcoin ETP in Europe in First Crypto Foray Exterior U.S.
