BTCetc Bitcoin Exchange Traded Crypto (BTCE) had a record trading day on 4 January with trading volume of over USDUSD100m. This comes after a previous record high of USD54 million on 17 December. BTCE has also surpassed USD375 million assets under management (AuM).
Maximilian Monteleone, Head of Business Development at ETC Group, says: “Bitcoin has seen phenomenal interest as the price has increased from USD20,000 in mid-December to USD31,000 yesterday. Investors seem to be moving into bitcoin because of concerns around major currency devaluation as a result of massive stimulus packages being tabled by governments in response to the Covid-19 crisis.
“BTCE is an exchange traded cryptocurrency on Deutsche Boerse, and with that investors do not have to worry about the risks of trading Bitcoin on unregulated crypto exchanges or handling and storing bitcoin themselves. BTCE trades just like a stock and is safely held in the investor’s securities account at their regulated broker or bank.”
BTCE tracks the price of Bitcoin and is 100 per cent physically backed, providing investors with a safer and transparent way to gain exposure to Bitcoin. The 10-day average spread of BTCE is 11 basis points. BTCE was also the world’s first central counterparty cleared bitcoin ETP. It is UCITS eligible and is distributed and marketed by HANetf.
Approved by BaFin, the German financial regulator, BTCE is structured as an exchange traded product (ETP) that is physically backed by Bitcoin. Each unit of BTCE gives the holder a claim on a predefined amount of bitcoin – a structure very similar to physically-backed gold exchange traded commodities, and allows investors the option for redemption in bitcoin. For every unit of BTCE, there is bitcoin stored in regulated, insured, institutional-grade safe custody. The entire ETP structure is based on a transparent and verifiable process to ensure that the provenance of all bitcoin in custody has been strictly vetted. BTCE is UCITS eligible.
