HANetf, Europe’s first full services ‘white label’ UCITS ETF issuer, plans to extend its white label product platform capabilities to cryptocurrency ETCs.
To date, the firm has focused on UCITS ETFs and physically backed gold and carbon ETCs. The current platform has around 20 clients and over 40 ETFs and ETPs.
HANetf currently distributes the single coin crypto ETC range on behalf of ETC Group which the firm describes as among the most liquid available in Europe. HANetf’s new ETP product platform will be designed to enable the manufacture and management of crypto ETCs within the HANetf platform.
In the same way HANetf has multiple clients for UCITS ETFs, the firm expects to have a similar model for crypto ETPs as the industry develops over time.
The offering aims to build on its white label position developed alongside its existing UCITS clients, commodity ETP clients, and ETC Group’s crypto ETCs, and to build out the range and expertise to provide one of the most comprehensive offerings globally.
HANetf intends to continue working closely with ETC Group to expand their offering and expects products from new clients to enhance the crypto offering available on the HANetf platform. The objective will be to provide the most extensive crypto ETP platform available in Europe and beyond.
The firm writes that it believes the cryptocurrency market is still in its infancy, with millennials and the younger generation still being ‘big believers’. While much attention is focused on the fall in the cryptocurrency market cap from USD3 trillion at the end of 2021 to under USD1 trillion today, that stood at USD57 billion just five years ago, suggesting the long-term trend of the asset class is still one of growth, the firm says. “We believe crypto is an asset class which will continue to develop, grow, and become more mainstream over time.”
The firm writes that the new ETP platform will allow clients to choose between a ‘full service’ model, or a more basic model which may be of interest to managers with existing distribution networks or particular target markets in mind.
Crucially, the firm says it will be fully integrated with HANetf’s existing UCITS platform, benefiting from a deep ecosystem of 60+ distribution networks, 28 liquidity providers, and a pan-European reach accumulated over the past four years. HANetf’s ETC clients will have full access to this from day one, the firm says, reducing their effective launch timeline to only a couple of months and a shared cost model versus a full cost model of setting up a proprietary platform.
Over the past year, HANetf has received 53 enquiries regarding the creation of new crypto related ETCs and such enquiries continue despite market volatility. HANetf writes that it believes that, with the current pull back in the market, now is the time for asset managers to invest and benefit from recoveries in the asset class.
HANetf continues to expand its ETC and cryptocurrency product team with Torsten Dueing joining HANetf as Head of ETC Structuring earlier in 2022. Torsten oversees the development and growth of the firm’s existing ETC products which include commodities and carbon offsets.
Dueing joins Owen Rees on the ETC Product Development team. Rees joined HANetf in September 2021 from IHS Markit (S&P), where he was global co-head of EBS (ETFs & Benchmark Solutions), and is best known as a member of the team that launched Europe’s first gold-backed ETF and the GLD, the world’s largest gold backed ETF in the USA.
Nik Bienkowski, Co-CEO and Co-Founder of HANetf says: “At HANetf we have been at the forefront of innovative new ETP launches. Among our extensive range of thematic funds are several firsts, such as Europe’s first Metaverse, space economy, and medical cannabis UCITS ETFs. However, we have also carved out a space in the world of cryptocurrency and commodity ETCs. Given our history of creating the world’s first gold ETC, commodity, and currency ETCs, it’s a natural extension of our offering to expand into providing white label ETC and ETP solutions. We want to be a one-stop-shop across all asset classes and product structures!
“Our new crypto ETC platform continues in this vein. It is clear to us that many, despite the recent sell-off, view cryptocurrencies as playing a vital role in our digital future. For the investor trying to gain exposure to cryptocurrencies, we believe there is no doubt that the ETC wrapper is one of the best ways to do so. With this new platform we will be able to provide innovative new ETCs to the European market.
“We also believe many mainstream asset managers and product providers like investment banks have regulatory, operational, and infrastructure challenges with crypto and an outsourced solution via HANetf makes a lot of sense.”