ETC Group Bitcoin ETP Hits $49 Million Assets

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ETC Group Bitcoin ETP Hits $49 Million Assets Under Management in Two Months

The Etc Group said Wednesday that its centrally opened bitcoin exchange (ETP) exchange-traded products have accumulated up to $ 49 million in assets under management since launching on June 18, 2020.

The contract, known as Bitcoin Exchange Traded Crypto (BTCE), tracks the price of BTC and is 100% physically backed by the cryptocurrency.

It started trading on the electronic trading market Xetra Deutsche Börse in June with a total cost ratio of 2% - a measure of the total cost of funds to investors.

According to the Etc Group, a London-based financial services company, Btce was the most traded non-leveraged asset in the Xetra exchange-traded notes segment in July, with a volume of over $ 67 million.

"Btce has been popular with both experienced crypto traders ... as well as attracting a whole new community of investors who appreciate its centrally cleared and exchange-traded characteristics," said Andre Voinea, director of Hanetf, in an emailed statement.

Hanetf is a private issuer of EU-approved exchange-traded funds. BTce is distributed and marketed on the corporate platform. Voinea added:

"The Caliber of Official Participants supporting liquidity at Btce demonstrates how bitcoin has matured into a significant and serious institutional asset. By centralizing the previously fragmented Bitcoin liquidity at Xetra, we are bringing a time-tested product structure to a new asset class along with the same regulatory protections. to purchase other listed securities. "

One Btce is equivalent to 0.001 bitcoin, less cost, Etc Group says, allowing the holder of each unit of its derivatives to claim a specific amount of bitcoins. These assets can be redeemed in BTC or cash.

The company states that for each ETP unit, "there is bitcoin stored in a regulated institutional level safe" - identified as the Bitgo Trust Company. Products like these are key to introducing retail investors who might be risk-averse to bitcoin.