Poland’s main stock exchange, the largest in eastern Europe, has given the green light to trading in several investment products based on major cryptocurrencies.
The move comes amid regulatory uncertainty caused by the Polish government’s failed attempt to push through legislation to bring domestic cryptocurrency rules in line with the latest EU rules.
Four crypto ETPs debut on Warsaw Stock Exchange
Exchange-traded products (ETPs) for some of the highest-valued cryptocurrencies have hit the Polish market, local media revealed.
This product is based on Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple. $XRP. They are issued by the Swedish company Virtune AB and support staking.
The offering will allow Polish investors to indirectly put money into digital assets, the Bitcoin.pl portal noted in a report on Friday.
The company’s transaction was approved by the Management Board of the Warsaw Stock Exchange (WSE), headquartered in the Polish capital, earlier this week.
The market, also known as GPW in Polish, is the largest trading venue in Central and Eastern Europe and the most liquid market for stocks, derivatives and commodities.
According to statistics, as of February 27, 400 companies, including 18 foreign corporations, are listed on the WSE, with capital exceeding 2.5 trillion Polish zlotys (more than $710 billion).
According to a resolution recently adopted by the platform, four ETNs (Exchange Traded Securities) will be issued by Virtune.
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These include Virtune Bitcoin Prime ETP (ETNVIRBTCP), which offers exposure to major cryptocurrencies with a 0.25% annual management fee, and Virtune Staked Ethereum ETP (ETNVIRETH), an Ether-based product that offers staking.
Virtune Staked Solana ETP (ETNVIRSOL). It allows exposure to Solana and provides additional staking returns of approximately 3% per year. $XRP ETP (ETNVIRXRP), a means of providing access to Ripple $XRP Tokens are also on the menu.
According to Virtune, they are all fully backed by cryptocurrencies stored on leading US crypto exchange Coinbase and rely on Chainlink Proof of Reserves technology to ensure reserve transparency.
How can I invest in products linked to cryptocurrencies?
Exchange-traded products listed on the WSE can be purchased on złoty in Poland and do not require a cryptocurrency account. This eliminates the risk of storing coins in personal wallets or cryptocurrency exchanges.
This arrangement will make it more attractive for customers without sufficient experience with blockchain technology or digital assets, as they will be able to indirectly invest in four of the largest cryptocurrencies by market capitalization.
Bitcoin.pl further states that Virtune ETP can also be purchased under the IKE and IKZE retirement plans. IKE (Individual Retirement Account) and IKZE (Individual Retirement Security Account) are voluntary savings schemes with certain tax benefits for Poles.
In a press release cited by the Polish crypto press, Virtune CEO Christopher Koch emphasized that Poland is a priority destination for his company.
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Sweden-based Virtune is primarily focused on the Scandinavian market, managing approximately $260 million in assets and holding 95% of the region’s crypto ETN market, according to the report.
The financial company plans to introduce other innovative products to the Polish market by the end of the year, including more crypto-based ETPs.
ETPs form a broad category of exchange-traded products, including exchange-traded funds (ETFs) and exchange-traded funds (ETNs).
Funds own the underlying assets, but bonds are debt instruments that mimic the performance of assets without actually owning them. Poland’s first Bitcoin ETF was listed on the WSE in September.
Poland’s crypto space faces uncertainty
The future of Poland’s cryptocurrency market, arguably the largest in Eastern Europe, is currently quite uncertain as the Warsaw government has failed to pass regulatory legislation.
A government-proposed bill aimed at transposing the EU’s Market for Cryptoassets (MiCA) regulation into national law has been vetoed twice by President Karol Nawrocki.
The controversial draft, which is currently stalled, was also rejected by industry insiders who warned it could wipe out crypto businesses in the country. But their activities could become illegal if the law is not adopted by July 1, according to Poland’s financial watchdog KNF.