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.