The BTCetc Bitcoin Exchange Traded Crypto (BTCE) has reached USD49 million in AUM in less than two months since its launch via the HANetf white-label platform. BTCE has rapidly become an investor favourite and in July was the most traded security on the XETRA ETN segment, trading more than USD67 million across all available German trading venues.
BTCE was the first cryptocurrency product to launch on XETRA and represents a significant evolution in the way that investors can buy, hold and sell bitcoin.
BTCE is 100 per cent physically backed by bitcoin and for every unit of BTCE, there is bitcoin stored in regulated, institutional-grade custody meaning investors don’t face the technical challenges of purchasing and storing bitcoin, such as setting up a cryptocurrency wallet or trading on unregulated crypto exchanges.
BTCE was also the first instrument globally that facilitated bitcoin or any crypto being central counterparty cleared, reducing counterparty risk and creating a safe and transparent way to gain exposure to the world’s largest crypto currency.
By bringing institutional-grade liquidity to bitcoin investors via a network of world class Authorised Participants (APs) and Market Makers, BTCE has effectively centralised previously fragmented bitcoin liquidity on XETRA, ensuring deep liquidity and tight spreads. This means that investors can purchase in all sizes without having to worry about market impact.
Andre Voinea, Director, DACH Region at HANetf, says: “BTCE has been popular with both experienced crypto traders who appreciated the additional levels of safety and security that BTCE provides, as well as attracting an entirely new community of investors who value its familiar exchange-traded and centrally cleared characteristics.
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.
With many investors concerned about looming inflation, bitcoin has risen in popularity and we expect even further growth in BTCE over the course of 2020.”
Investors can purchase BTCE through their regular broker or bank with access to XETRA, and individuals or institutions wanting to exchange their bitcoin holdings directly for the product can do so via the network of Authorised Participants of the Issuer. bitcoin is a volatile product and each investor should consider the risks carefully. Past performance is no guarantee of future performance. As with all exchange traded products, an investor’s capital is at risk.
Overall, ETFs and ETCs on the HANetf white-label platform have grown by 600% YTD, making HANetf one of the fastest growing ETF issuers in Europe.