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China is Expecting its First-Ever Blockchain Exchange-Traded Fund

Shenzhen is expecting its nation’s first exchange-traded fund (ETF) that will track blockchain-themed stocks as underlying assets.

Penghua Shenzhen Stock Exchange Blockchain ETF’s application was filed by the Chinese asset management firm, Penghua Fund. The Shanghai Securities News reported that the application was accepted by the China Securities Regulatory Commission (CSRC).

The proposed blockchain ETF aims to track the performance of Shenzhen-listed public stocks that own businesses in the blockchain industry.

The Shenzhen Stock Exchange also issued the Shenzhen Stock Exchange Blockchain 50 Index simultaneously. The report indicated that brokerage research stated that after the Shenzhen Stock Exchange launched the Blockchain 50 Index, there may be an increase of new blockchain index and related themed fund products launching in the future, broadening the opportunity for capital entry.

According to the report, if the application receives final approval from the CSRC, it would result in the nation’s first blockchain-themed ETF that is open to public investors.

Image via Shutterstock

German Stock Exchange Subsidiary Blocknox Unveils Cryptocurrency Custody Services to Institutional Clients

German Stock Exchange Boerse Stuttgart has announced that its subsidiary Blocknox will begin providing digital asset and cryptocurrency custody services to institutional clients.

Blocknox was established in January 2019 as a crypto custody service for users of the BISON app. In September 2019, this service was extended to users of Boerse Stuttgart Digital Exchange (BSDEX). The latest announcement involves an expansion of the service to institutional clients like asset managers, banks, and fintechs.

Dr. Ulli Spankowski, managing director of Blocknox, commented on the development being made within the firm. He said, “Blocknox is a pioneer leading in this field in Germany. The company has already been offering a custodian of crypto assets for more than one year. We now want institutional clients to benefit from our set-up and experience as well. They can utilize Blocknox’s reliable custody as a building block for their own services around digital assets.”

Boerse Stuttgart stated that a “multilevel security concept” has been built and deployed at Blocknox to protect assets under custody.

With new regulations for Germany-based crypto services introduced in January 2020, Blocknox revealed that it has already informed the supervisory authorities for its intent to apply for the required license. This means that Blocknox can provide custody services on a provisional basis. The company intends to submit the final application before the specified deadline to become a regulated financial service provider.

Dr. Spankowski added, “We welcome the new legislation of crypto custody as an important step towards greater professionalism of the industry. Due to the new regulation, more institutional players are likely to enter the cryptocurrency market. We expect to support them as a crypto provider.”

However, Blocknox will experience significant competition. Last week 40 banks approached Germany’s financial regulator BaFin requesting permission to get into the digital asset custody business. But Blocknox has slightly moved forward with its lead response timing over the banks.

Image via Boerse Stuttgart

TZERO Shut Down Crypto Exchange

This information was sent to customers by the corporation on February 3 via its Twitter account in the form of a message. The cryptocurrency exchange known as tZERO is mostly owned by Overstock, and its last day of business will be March 6th of this year. As a result of the suspension, the company announced that it would maintain its concentration on the regulated securities products that it provides during the time that the United States Securities and Exchange Commission (SEC) and other authorities are working to clarify the legal status of crypto assets.

The city of New York is home to the headquarters of the firm known as tZERO, which is focused on developing technological solutions for the financial sector. This makes it considerably easier for private corporations to sell their assets on the public market whenever they find themselves in a position where they need to or want to do so. It is probable that the fact that tZERO provides investors with the opportunity to purchase tokenized shares is the factor that has contributed most to the company’s success in the cryptocurrency industry. Tokenized shares, which may also be referred to as “digital securities” due to their ability to be exchanged on a blockchain, are frequently referred to as “digital securities.”

The online retailer Overstock reportedly owns around 55% of the firm tZERO, as stated in a statement that was issued by the company on August 26 in the form of a press release.

The conventional cryptocurrency exchange known as “tZERO Crypto” was officially introduced in the year 2019, when tZERO celebrated its 10th anniversary. On this particular platform, users had the ability to purchase, trade, and store a wide variety of cryptocurrencies, some of which were Bitcoin (BTC), Ether (ETH), and Litecoin (LTC), amongst others. On the other side, the corporation stated in the most recent notice that it will stop operations of this exchange on March 6th. This notification was sent out on February 3rd and was the most current one that was sent.