Bitcoin ETPs debut in the UK
Bitcoin ETPs are coming to the UK market. ETC Group’s BTCE Bitcoin will be listed on the Aquis Exchange, both in London and Paris.
This is the first time that a Bitcoin ETP is coming to the UK market or to a European MTF (Multilateral trading facility, an alternative to the traditional stock).
Trading will be available from 7 June.
Most traded Bitcoin ETP arrives in the UK
ETC Group’s ETP had already debuted in Germany on Deutsche Börse and then on Swiss Six Exchange in Switzerland. To date, it is one of the most widely traded Bitcoin ETPs in 2021, reaching $459.66 million in volume in the first quarter, 41% of the total Bitcoin ETPs in circulation.
ETC Group selected Aquis as one of the most regulated exchanges, operating in 15 European markets and allowing trading of 1,700 different securities.
Bradley Duke, CEO of ETC Group, said:
“We have seen many investors recognise the benefits of including secure crypto ETPs like BTCE in their portfolios as an effective hedge against inflation. ETC Group provides exposure to bitcoin, ether, and litecoin through our 100% physically backed cryptocurrency ETPs, and bringing our flagship bitcoin product to Aquis Exchange was a logical step as institutional demand for exposure to crypto grows around the world”.
Alasdair Haynes, CEO of Aquis Exchange, added:
“Investors are increasingly accepting digital assets as a bona fide asset class and giving them a place in balanced investment portfolios. Aquis has a history of innovation and is responding to client demand for these assets in an agile way allowing traders to access them in a liquid, regulated environment”.
WisdomTree also brings Bitcoin ETPs to Europe (but not the UK)
WisdomTree has also listed its Bitcoin ETP (BTCW) and Ethereum ETP (ETHW) on Euronext, the Paris and Amsterdam markets. Both were already listed on Börse Xetra (Germany) and SIX (Switzerland).
Jason Guthrie, Head of Digital Assets, Europe, WisdomTree, said:
“Listing on Euronext opens up more access points for investors to conveniently allocate to, and trade, both BTCW and ETHW. Since we launched our digital assets platform in 2019, we have seen a lot of development in the space. This milestone represents the growing acceptance of cryptocurrencies, the evolving European regulatory landscape and the latest signal that digital assets are here to stay. A willingness from regulators and exchanges to list cryptocurrency ETPs is lending further credibility to this growing and popular asset class. This development will buoy institutional investors, trading via Euronext, that have been waiting for further signs of acceptance before making their first allocations to digital assets”.
Alexis Marinof, Head of Europe, WisdomTree, added:
“Our commitment to support investors on their journey into digital assets is reinforced with the listings of BTCW and ETHW on Euronext. We have built a best-in-class digital assets platform, made up of the most investor-friendly bitcoin and ether ETPs. Our heritage provides a level of comfort and expertise investors are unable to get from other physically backed cryptocurrency ETP providers. This translates into a market leading product from price point through to unrivalled product structure”.
Jonathan Steinberg, CEO, WisdomTree concluded:
“We know digital assets and blockchain are top of mind for our clients and we want to help them understand and navigate the space. Accessibility has been a challenge for many investors but as another important exchange facilitates access, opportunities are continuing to open up for investors and barriers to adoption are decreasing”.
Why Invest in Bitcoin ETPs
Bitcoin ETPs are derivative products dedicated to institutional investors. In fact, people who buy them do not buy Bitcoin (or Ethereum) directly, but a share with an underlying in the cryptocurrency. The bitcoin are usually kept in cold storage by the company.
ETPs therefore allow institutional investors not to have to worry about storing their crypto. However, ETPs, even if they do not millimetrically reflect the price of the underlying crypto, are equally considered high-risk products due to market volatility.