Futurum Bank’s Admission of Bitcoin-backed Perpetual Bonds

Noerr advised futurum bank on the deal.

Futurum bank acted as an applicant for admission of up to €9 billion worth of bonds belonging to the crypto-fintech Iconic Funds BTC ETN GmbH. The bonds will be issued as “perpetual bonds” with no fixed term and interest rate and are physically backed by bitcoin.

The proceeds of the issue will be used to acquire bitcoin, which will be deposited by the issuer on a pledged wallet. Investors have the option to terminate their bonds at any time by means of an exchange rate mechanism against disbursement of their pro-rata bitcoin stock or to sell the bonds via the Frankfurt Stock Exchange. Through this innovative structure, investors can participate in the price development of the cryptocurrency and at the same time have an exchange-traded security.

The bonds were admitted to the regulated market (General Standard) of the Frankfurt Stock Exchange and included in the special ETFs & ETPs segment of the Frankfurt Stock Exchange. The bonds can thus be traded via the XETRA trading system, the largest trading venue for ETFs and ETPs in Europe. The public offering of the bonds will be completed in Germany and Europe on the basis of a securities prospectus approved by German financial watchdog BaFin.

Noerr team included Dr Dominik Kloka (Picture), Dr Julian Schulze De la Cruz (team lead), Dr Dirk Buken (Frankfurt) and Dr Martin Haisch (Frankfurt).

Involved fees earner: Dirk Buken – Noerr; Martin Haisch – Noerr; Dominik Kloka – Noerr; Julian Schulze De la Cruz – Noerr;

Law Firms: Noerr;

Clients: futurum bank AG;

Author: Federica Tiefenthaler