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:
The caliber of the authorized participants that support liquidity in BTCE shows how bitcoin has matured to become a severe and significant institutional asset. By centralizing previously fragmented bitcoin liquidity on Xetra, we are bringing a time-tested product structure to a new asset class and the same regulatory protections of buying any other listed security.
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.
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