Crypto trading and investment company Bitpanda has added commodities trading to its product lineup, allowing its 2.7 million users to gain exposure to oil, natural gas, aluminum and wheat.
The Vienna-based crypto investment app said the new offering will allow users to bet on the “short-term” price movements of 30 commodities. Bitpanda has been testing numerous pilot programs on different asset classes over the past few months, including themed crypto indices and exchange-traded notes. But this company will be the first to meet the demand for anti-inflationary products.
Behind the scenes, Bitpanda offers a derivative based on underlying commodity prices. Essentially, it allows traders to bet on an exchange-traded commodity contract (ETC) that tracks the price of individual commodities.
As inflation rises around the world amid the ongoing conflict between Russia and Ukraine, Bitpanda believes that commodities can incentivize investors to diversify their portfolios in such an environment.
In a statement, Bitpanda CEO and co-founder Eric Demuth said, “I am delighted that we have been able to add commodities to the platform at a time when inflation is biting into people’s savings. Bitpanda customers can now bet on their gas bill and benefit from short-term price movements of key commodities like oil, natural gas, corn, wheat and many more.
The news comes shortly after the Bank of Spain approved Bitpanda to officially act as a recognized Virtual Asset Service Provider (VASP) in the country.
Bitpanda, which is a Vienna-based cryptocurrency platform available in six European countries, was on the 15e company to receive this license. The approval allows it to operate in the country after working with the regulator to show that it meets the requirements defined by law.
Founded in 2014, BitPanda is a retail broker for digital assets, including over 30 cryptocurrencies. The company says it has onboarded over 2.5 million users and plans to expand into real-world assets to create a pan-European offering, with expansion having already begun in France, Spain and Turkey.
The new license comes as Madrid seeks to control crypto activities by introducing a series of new regulations, including stricter KYC rules for digital currency transactions. Spanish authorities want to prevent anonymity in cryptocurrency transactions, thus banning anonymous crypto accounts.