SEBA Bank has entered the ballooning cryptocurrency exchange-traded product (ETP) space with the launch of four strategies.
The Bitcoin Tracker Certificate USD (SBTCU). Bitcoin Tracker Certificate CHF (SBTCC), Ether Tracker Certificate USD (SETH) and SEBAX Tracker Certificate USD (SEBAX) are set to list on the SIX Swiss Exchange on 9 April. SBTCU and SETH will have total expense ratios (TER) of 0.75% while SBTCC and SEBAX will have TERs of 1.50%.
The four ETPs will offer investors exposure to digital assets without the custody and security challenges typically associated with trading cryptocurrencies.
The new range covers bitcoin and ether tracker certificates in US dollar as well as the first Swiss franc currency-hedged bitcoin tracker.
The Swiss bank will also list a tracker certificate on the SEBAX Crypto Asset Select index, a proprietary crypto asset index that seeks to offer greater diversification than market-weighted indices.
Stefan Schwitter, head of investment solutions at SEBA Bank, commented: “We believe our products stand out based on the institutional-grade quality and the highly competitive price points. We are providing a secure and cost-effective alternative to holding coins directly at exchanges.”
Guido Bühler, CEO SEBA Bank, added: “We set out to build a bridge from traditional banking to the digital world. Our product philosophy and the exceptional performance track record of the SEBAX Index are a reflection of this ambition.”
GHCO will be the liquidity provider and market maker for the ETPs. SEBA said the partnership will allow them to leverage their asset management and market making during a time of heightened investor appetite for crypto products.
Stefan Kaba-Ferreiro, head of trading and managing partner at GHCO said: “ETPs are a key development for investing in crypto assets as it matures as an asset class and we see more demand for reliable, easily-accessible infrastructure with deep pools of liquidity.”
The launch of SEBA’s products marks another step towards an institutionalised crypto market and follows the launch of the first centrally cleared crypto ETPs on 9 March. These came via 21Shares with the 21Shares Ethereum ETP (21XE) and 21Shares Bitcoin Cash ETP (21XC), and ETC Group with the ETC Group Physical Ethereum ETP (ZETH).