By
Steve Muchoki
April 19th, 2024
Diverse crypto trading app, Bitpanda recently announced commodities trading for its users for exposure to oil, natural gas, corn, and wheat.
Bitpanda is now offering commodities trading to its approximately 2.7 million customers. The Vienna-based crypto investment app recently added an option for users to trade oil, natural gas, aluminum and wheat. In a statement, Bitpanda chief executive officer and co-founder Eric Demuth, enthused:
“I’m excited we’ve been able to add commodities to the platform at a time when inflation is biting into people’s savings. Bitpanda customers can now bet against their gas bill and benefit from the short-term price movements of key commodities like oil, natural gas, corn, wheat and many more.”
By doing so, Bitpanda builds on its staple expansion from July which saw the platform onboard thematic crypto indices. Furthermore, the fintech company currently offers to trade in stocks and launched an exchange-traded note (ETNs) last year to track the price of the leading crypto, Bitcoin (BTC).
Bitpanda users will be able to access commodities trading via derivatives contracts, according to the company. However, the company will hold the exchange-traded commodities (ETCs). Users will not be able to procure shares in the physical asset.
Furthermore, Bitpanda also says that the new products will permit users to bet on short-term price movements. As company CEO Eric Demuth also pointed out, exposure to these ‘new’ commodities can protect investors’ portfolios in an inflationary environment.
Crypto Investment Indices, ETF, Precede New Bitpanda Commodities Trading Feature
Back in July, Bitpanda launched four new metaverse and decentralized finance (DeFi)-themed crypto investment indices. Other areas covered also include infrastructure as well as smart contracts. At the time, Demuth explained:
“These four new Crypto Indices give people the chance to invest in areas they are passionate about. There’s no hassle, no need to constantly research new crypto projects, just a simple way for everyone to diversify their portfolios.”
Furthermore, it was also reported then that the new thematic crypto indices would be automatically rebalanced based on market changes.
In December 2021, Bitpanda also launched its first Bitcoin ETF, the same year it achieved a valuation of more than $4 billion. According to reports at the time, the ETF would be accessible through brokers and platforms, including ING and Postbank. In addition, Bitpanda’s BTC ETF is euro-denominated, which means that investors would not need to manage private keys. Furthermore, these investors are also under no obligation to open an account with Bitpanda before accessing the exchange-traded note. Addressing the company’s ETN initiative at the time, Demuth said:
“Issuing an entirely EU-based Bitcoin ETC with Euro as a base currency, we are able to offer exposure to an alternative asset class.”
Bitpanda, like several outfits in the crypto industry, has also had to drastically downsize its workforce in recent times. Back in June, the multifaceted investment trading app had to let over 200 employees go. This resulted in a headcount of around 730 workers out of an initial 1,000 staff.