Alternative Investments/Digital: The Highly Successful BTCetc Bitcoin ETP Lists On SIX Switzerland
This is the ETP’s second listing in Europe after its launch on Deutsche Börse’s Xetra platform in June 2020.
BTCetc Bitcoin ETP (BTCE)
According to SIX, newly listed BTCE tracks the price of Bitcoin and is 100% physically backed. It thus allows traders and investors to assume bitcoin exposure with confidence, transparency, and convenience.
The ETC Group issued BTCE with marketing and distribution by HANetf, an independent provider of UCITS ETFs. The ETC Group stores the bitcoin with BitGo Trust Company, a secure, regulated custodian, purpose-built for holding digital assets. Strict KYC and AML standards ensure that the provenance of all cryptocurrencies in custody has been vetted.
The ETP made its debut on Deutsche Börse’s Xetra platform in June 2020. By November, it had become the first-ever crypto ETP to garner AUM of $100 million. The rally in the price of bitcoin and surging demand from crypto investors and traders triggered the solid surge in AUM.
Furthermore, these players invest in the ETP for its liquidity and the opportunity to get bitcoin exposure without having to deal with the risk of physical and personal custody. Instead, they get BTCE units that their broker or bank safely holds on their behalf.
Furthermore, investors have the optionality of being able to redeem BTCE for actual bitcoin if they wish. That’s because the product is 100% physically backed.
Cryptos on SIX
The Swiss Stock Exchange has earned a name for itself as the world’s leading marketplace for regulated crypto products.
It scaled the high watermark of crypto trading volumes of CHF 1.1 billion in 2020. That surpassed the previous record of CHF 525 million from 2017 by 112%.
With the introduction of the ETC Group, the number of ETP providers on SIX goes up to six and the number of ETPs to 34.
ETC Group and BTCetc
Major London-based institutions such as TX Ventures, the venture capital arm of electronic market-making firm XTX Markets, and financial services firm ITI Capital, which also acts as Authorised Participant for BTCE, back the ETC Group.
Bradley Duke, CEO of ETC Group, said to ETF Strategy: “BTCetc Bitcoin Exchange Traded Crypto (BTCE) brings to the world of bitcoin the transparency and investor protection that regulators and institutional investors require, and we are very excited to be listing in Switzerland, which is one of the most advanced markets for digital and crypto-assets anywhere in the world.”
“Investors are adding Bitcoin to their portfolios because of concerns around the devaluation of major currencies related to governments funding COVID financial rescue packages through increased money supply,” Duke added. “BTCE tracks the price of Bitcoin very closely and is highly liquid and trades with very tight spreads making it the vehicle of choice for many investors to gain exposure to physical Bitcoin.”