August 14, 2020
ETC Group stated last Wednesday that its centrally cleared bitcoin exchange-traded product (ETP) has collected up to $49 million in assets under supervision since launch on June 18, 2020.
The agreement, known as Bitcoin Exchange Traded Crypto (BTCE), tracks BTC’s price and is 100% materially supported by the cryptocurrency. It started a transaction on Deutsche Börse’s Xetra electronic trading market in June with a total expense ratio of 2%, a portion of the fund’s total cost to the investor.
According to Etc Group, a London-based financial services firm, Bruce was the most traded non-leveraged asset on Xetra’s exchange-traded notes segment in July, with volumes of more than $67 million.
“Btce has been popular with both experienced crypto traders…as well as attracting an entirely new community of investors who value its familiar exchange-traded and centrally cleared characteristics,” said Andre Voinea, a director with Hanetf, in a testimonial.
Hanetf is a European Union-approved single transmitter of exchange-traded funds. Btce is dispersed and promoted on the company’s platform. Voinea added:
One Btce is equal to 0.001 bitcoin, fewer fees, Etc Group says, permitting the holder of each unit of the derivative a claim on a particular amount of bitcoin. The asset is exchangeable in either BTC or cash.
The company notes that for every unit of the ETP, “there is bitcoin stored in regulated, institutional-grade safe” – acknowledged as the Bitgo Trust Company. Products such as these are crucial to presenting retail investors who might be risk-averse to bitcoin.