Alternative Investments/Digital Assets: BTCetc Exchange Traded Bitcoin ETC (BTCE) Scores $100M AUM In Four Months
The first crypto ETP to list on the Deutsche Boerse has put up a stellar showing.
The bitcoin exchange-traded crypto from the stable of the ETC Group that trades on the Deutsche Boerse has taken the honors to become the first crypto ETP to chalk up an AUM of $100 million. (ETF Stream)
The BTCetc Exchange Traded Bitcoin ETC (BTCE) achieved that significant milestone based on the twin factors of a solid rally in bitcoin, as well as surging demand from investors. According to ETF Strategy, the product garnered inflows of $6 million in the past two days.
Investors are attracted to the ETP because it offers exposure to the price movements of bitcoin without the hassles and risk of storing crypto assets. An ETP also offers more liquidity.
Furthermore, investors have the optionality of being able to redeem BTCE for actual bitcoin if they wish, because the product is 100% physically backed.
Investors are also seeking a haven from the seemingly relentless expansion of the money supply by central banks across the globe in response to the economic upheaval triggered by the virus pandemic.
The BTCetc Exchange Traded Bitcoin ETC (BTCE) – Twin Firsts
The ETP from the ETC Group has two firsts to its credit.
It was the first crypto ETP to list on the Deutsche Boerse in late June after receiving approval from BaFin, the German financial regulator, earlier in the year.
BTCE also has the distinction of being the first ETP in the world to offer central counterparty clearing for bitcoin.
The BTCE ETP’s advantages
“We worked really hard to engineer a product that provides investors with a safer and more transparent way to gain exposure to bitcoin,” said Bradley Duke, CEO of ETC Group. “By reaching the $100 million AUM milestone in just over four months, we feel that the investment community has recognized the quality of BTCE’s investor protections and trading experience which has resulted in over 1 million shares of BTCE being traded in a single day on Deutsche Börse’s Xetra.”
Institutional interest spiking higher
The ETC Group launched the ETP in collaboration with HANetf, the London-based white-label ETF platform.
“Initially, demand was mainly from the retail space – private investors and the like,” said Hector McNeil, Co-CEO of HANetf. “However, over the last few weeks, we have seen a marked uptick in interest from professional investors, most notably private banks and wealth managers but also increasingly institutionally managed UCITS money.
“Investors like the robustness of the structure for larger positions, especially the central counterparty clearing,” McNeil added.
Related Story: World’s First Actively Managed Bitcoin ETP Launches
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