The issuer of Europe’s only bitcoin-based exchange-traded notes (ETNs), XBT Provider, on Thursday announced that its assets under management (AUM) have doubled within the last 45 days to $100 million, due to “rapidly escalating” demand from investors. In addition, the Swedish-domiciled company has partnered with leading Bitcoin wallet and custodian Xapo.
Unprecedented Volume and Demand from Investors
Bitcoin.com recently reported on Britain’s largest broker, Hargreaves Lansdown, offering XBT Provider’s products on its investment platform. Bitcoin Tracker One and Bitcoin Tracker Eur, the only ETNs in Europe, are now available to Hargreaves Lansdown’s 876,000 clients.
Following this news, XBT Provider on Thursday announced that its total AUM has grown from $50 million on May 1 to $100 million. In the last 6 months, it has nearly tripled. Jean-Marie Mognetti, Head of Trading and Operations, commented:
In the last 60 days, XBT Provider’s exchange traded bitcoin note has experienced unprecedented volume in trading and demand from both retail and institutional investors searching for exposure to bitcoin. This trend has quickly doubled assets under management to over the $100 million threshold.
Interest in bitcoin from institutional investors has recently increased. Bitcoin.com reported last week on how hedge funds are quietly investing in the digital currency. A couple of days later, Goldman Sachs started covering bitcoin due to popular demand from its hedge fund clients.
Both ETNs are designed to mirror the return of bitcoin. One is denominated in Swedish krona (SEK) and the latter in the euro (EUR). They are listed on the NASDAQ/OMX exchange in Stockholm and both are available in 179 countries.
Partnership with Xapo
In Thursday’s announcement, XBT Provider also revealed a custodial partnership with Xapo. Bitcoins held in cold storage on behalf of investors in the two ETNs will now be secured by Xapo. In January, the Zug-based company received conditional approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate in Switzerland.
XBT Provider’s Head of Investor Relations, Ryan Radloff, said, “the addition of Xapo to our infrastructure is a critical step in ensuring that our products remain the most professional bitcoin investment products available to investors, globally.”
Xapo is also the custodian of Barry Silbert’s Bitcoin Investment Trust (GBTC) which is currently seeking approval from the U.S. Securities and Exchange Commission (SEC) to become a bitcoin ETF.
Do you think institutional investors will continue to invest in bitcoin ETNs? Let us know in the comments section below.
Images courtesy of Shutterstock, XBT Provider, and Xapo
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