Etc Group said Wednesday that its centrally cleared bitcoin exchange-traded product (ETP) has accumulated up to $49 million in assets under management since launch 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 Deutsche Börse’s Xetra electronic trading market in June with a total expense ratio of 2% – a measure of the total cost of the fund to the investor.
According to Etc Group, a London-based financial services firm, Btce 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 an emailed statement.
Hanetf is a European Union-approved private issuer of exchange-traded funds. Btce is distributed and marketed on the company’s platform. Voinea added:
The calibre of the Authorized Participants that support liquidity in Btce shows how bitcoin has matured to become a significant and serious institutional asset. By centralizing previously fragmented Bitcoin liquidity on Xetra, we are bringing a time-tested product structure to a new asset class along with the same regulatory protections of buying any other listed security.
One Btce is equivalent to 0.001 bitcoin, less fees, Etc Group says, allowing the holder of each unit of the derivative a claim on a specific amount of bitcoin. The asset is redeemable in either BTC or cash.
The company states that for every unit of the ETP, “there is bitcoin stored in regulated, institutional-grade safe” – identified as the Bitgo Trust Company. Products such as these are key to introducing retail investors who might be risk-averse to bitcoin.
What do you think about the growth of the Etc Group’s exchange-traded product? Let us know in the comments section below.
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