Industry Updates

ETC Group’s bitcoin ETP crashes through $100m barrier

Launched in June

Tom Eckett

a close-up of a gold coin

ETC Group’s bitcoin exchange-traded crypto (ETC) has become the first cryptocurrency ETP to pass the $100m assets under management (AUM) barrier just four months after launch.

The BTCetc Bitcoin Exchange Traded Cryptocurrency (BTCE) became the first crypto ETP to list on the Deutsche Boerse in late June via white-label ETF platform HANetf after receiving approval from BaFin, the German financial regulator earlier in the year.

Along with becoming the first crypto ETP to list on the Deutsche Boerse, BTCE is also the first central counterparty cleared bitcoin ETP.

Central counterparty clearing reduces the risk of settlement failures compared to bilateral settlement which other crypto ETPs are subject to.

Bradley Duke, CEO of ETC Group, commented: “We worked really hard to engineer a product that provides investors with a safer and more transparent way to gain exposure to bitcoin.

“By reaching the $100m AUM milestone in just over four months, we feel that the investment community has recognised the quality of BTCE’s investor protections and trading experience which has resulted in over 1 million shares of BTCE being traded in a single day on Deutsche Boerse.”

Why the UK remains years not months off a crypto ETP

BTCE is the largest crypto ETP on the European market while crypto ETP specialist 21Shares offers the most extensive range.

Last December, WisdomTree also entered the space with the launch of the WisdomTree Bitcoin ETP (BTCW) which currently has $50m AUM.

Although the space is growing, crypto ETPs suffered a blow in the UK after the Financial Conduct Authority (FCA) banned the sale of crypto-derivatives, including exchange-traded notes (ETNs) to retail customers from January 2021.

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