21Shares AG, an issuer of crypto ETPs is officially listing its 21Shares Bitcoin ETP, 21Shares Ethereum, and signature crypto basket index HODL in GBP on the Swiss SIX Exchange on 30 June 2020. According to senior management, the “reducing FX conversion costs by listing in key European currencies is an additional item of its strategy to widen market participation”.
The Bitcoin ETP (ABTC) has now been listed and trading for over 18 months which has helped lead the market in gaining institutional acceptance for investing easily and securely into digital assets using conventional brokers. It was the first to list on a regulated stock exchange, the SIX Swiss Exchange and benefits from a cost-effective annual management fee of 1.49 per cent which makes it one of the cheapest crypto ETPs on the market. According to client feedback, expanding market participation further, specifically amongst UK-based investors, required a listing in local currency. This removes the cost of high and unpleasant FX conversion fees, as well as access restriction limitations where brokers cannot settle in foreign currency in domestic markets.
Laurent Kssis, Managing Director, 21Shares AG, says: “Expanding market participation is one of our core focuses. As we already list our crypto ETPs in USD, CHF and EUR, it was only natural to add GBP. This opens up our institutional-grade crypto ETPs to all UK investors with access and connectivity to the SIX Swiss Exchange.”
Charlie Morris, Chairman of UK based Bytetree, says: “We are excited by the news of a GBP listing for 21Shares successful crypto ETPs. This will give UK clients more choice by which they can access this emerging asset class with the reassurance of doing so via a regulated European exchange, which is a key factor raised by many institutional investors like us!”
The GBP listings come at a time where demand by UK investors is accelerating. Investors have indicated that engineering crypto products in a structure that they are familiar with (ie ETP) is a key factor when allocation 1-2 per cent of their portfolios in alternative assets classes.
There is an array of products available for institutional investors to purchase Bitcoin. Exchange Traded Products are ideally suited for investors looking for security and cost-effective access compared to other available structures due to its most prominent characteristics being fully collaterised, quoted by independent market makers, and offer full creation/redemption mechanism at the prevailing NAV price.It makes them ideal for larger ticket sizes and removes price premiums, which are a critical shortcoming in the industry.
21Shares was also honoured in May 2020 as the winner of the ADVFN International Financial Awards 2020 for ‘“Most Innovative Crypto Product” which recognised and celebrated the best breed of crypto issuers from across the global financial industry.