Crypto ETC investment products of the ETC Group are now tax-free after a one-year holding period in Germany

Crypto ETC investment products of the ETC Group are now tax-free after a one-year holding period in Germany

May 16, 2022. Frankfurt, Germany: ETC Group ( etc-group.com ), Europe's leading specialist provider of institutional-grade digital asset-backed securities, announces that gains from its Crypto ETCs in Germany will now be treated tax free after a one year holding period. This significant development comes about due to the recent update by the German Federal Ministry of Finance (BMF) on tax treatment of gains made from virtual currencies and other tokens.[1]

This clarification to the rules means that crypto ETCs such as BTCE, ZETH and ESOL should be treated in the same way as physical gold ETCs, for example Xetra-Gold® or The Royal Mint Physical Gold, which are already tax-free. German private investors will not have to pay taxes on profits from such investments after a minimum holding period of one year, thanks to the full physical backing of each ETC and the opportunity to redeem them physically. Furthermore, this tax exemption has no cap, meaning investors can hold any amount.

ETC Group's institutional grade exchange-traded products are popular with a wide range of investors who want to continue investing through traditional financial markets while gaining access to the digital asset class. Investors can currently choose from 14 different ETCs at ETC Group in order to be able to participate in the price development of Bitcoin, Ethereum and other popular cryptocurrencies.

Bradley Duke, Founder and Co-CEO of ETC Group said:

ETC Group was formed to provide robust, highly liquid and innovative cryptocurrency ETCs to investors in Germany and abroad. As part of the product development, our goal was to apply the best features of established physical gold ETCs to our crypto ETCs. This includes the possibility for end investors to have the underlying cryptocurrency physically delivered. The natural outcome of this feature is to achieve positive tax treatment for BTCE, ZETH and our other ETC products.

Andre Voinea, Head of German Speaking Regions at HANetf (official distribution partner of ETC Group), commented

This is an exciting development and we have been working towards such clarification for investors for a long time together with our partner ETC Group. The latest development now gives investors another good reason to access our crypto ETPs to invest in cryptocurrencies. The decision to equate physical crypto ETCs with physical gold ETCs introduces parity between the two groups of assets, as there are extensive and long-standing legal guidelines for the latter.

The advantages compared to a direct investment in digital assets include the following:

Easy way to invest without the need for a digital wallet

Investors can buy and sell like any stock or ETF through their regular broker or bank. No need to engage with the technical challenges of setting up a cryptocurrency wallet, products have a ticker and ISIN and can be added to an investor's conventional stock portfolio.

Institutional-grade asset custody

The underlying digital asset is kept in cold-storage at a regulated custodian, and all assets are secured by an independent trustee, thus eliminating issuer default risk, a common feature for physical ETC structures.

100%% physically backed & option for physical redemption

Investors are legally entitled to the underlying digital asset, and can redeem the ETC for the сryptocurrency, alternative to selling on exchange. Hence ETC products provide pure exposure to the underlying digital asset.

Regulated and listed on Europe's major stock exchanges

Approved and issued by BaFin, the listings include Deutsche Börse XETRA, Europe's leading ETF trading exchange.

Important information:

This article does not constitute investment advice, nor does it constitute an offer or solicitation to buy financial products. This article is for general informational purposes only, and there is no explicit or implicit assurance or guarantee regarding the fairness, accuracy, completeness, or correctness of this article or the opinions contained therein. It is advised not to rely on the fairness, accuracy, completeness, or correctness of this article or the opinions contained therein. Please note that this article is neither investment advice nor an offer or solicitation to acquire financial products or cryptocurrencies.

Before investing in crypto ETPs, potentional investors should consider the following:

Potential investors should seek independent advice and consider relevant information contained in the base prospectus and the final terms for the ETPs, especially the risk factors mentioned therein. The invested capital is at risk, and losses up to the amount invested are possible. The product is subject to inherent counterparty risk with respect to the issuer of the ETPs and may incur losses up to a total loss if the issuer fails to fulfill its contractual obligations. The legal structure of ETPs is equivalent to that of a debt security. ETPs are treated like other securities.

About ETC Group

ETC Group has been created to provide investors with the tools to access the investment opportunities of the digital assets' and blockchain ecosystem. The company develops innovative digital asset-backed securities including ETC Group Physical Bitcoin (BTCE) and ETC Group Physical Ethereum (ZETH) which are listed on European exchanges including XETRA, Euronext, SIX, AQUIS UK and Wiener Börse.

With a track record of over three years, ETC Group is made up of an exceptional team of financial services professionals and entrepreneurs with experience spanning both digital assets and regulated markets. With product quality and safety at the core of our product creation approach, the company aims to continuously launch best-in-class institutional-grade exchange traded products.

As a company, ETC Group has previously launched BTCE - the world’s first centrally cleared Bitcoin exchange traded product on Deutsche Börse XETRA, the largest ETF trading venue in Europe, and also listed DA20, the world’s first crypto ETP tracking an MSCI index signalling a move towards investment management products. DA20 provides broad market exposure to investors by tracking an index of 20 cryptocurrencies which cover 85% of the total crypto market capitalisation.

Trading Information

Product Name
Exchange
Ticker (BBG)
ISIN
SEDOL
WKN / Valoren
Currency
Listing Date
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A27Z304
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
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Ticker (BBG)
SEDOL
ISIN DE000A3GVKY4
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A3GMKD7
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A3GN5J9
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A3GVKZ1
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A3GYNB0
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A3G90G9
Valoren
WKN
WKN / Valoren /
25-06-2024
Ticker
Listing date:
Ticker (BBG)
SEDOL
ISIN DE000A4AER62
Valoren
WKN
WKN / Valoren /
25-06-2024

Contact

General Inquiries info@etc-group.com
Institutional investors institutional@etc-group.com
Press Inquiries media@etc-group.com

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