Digital assets specialist 21Shares has unveiled the world’s cheapest ETP providing directly backed exposure to bitcoin.
The 21Shares Bitcoin Core ETP is 44 basis points cheaper than its closest rival.
The 21Shares Bitcoin Core ETP (CBTC SW) has been listed on SIX Swiss Exchange in US dollars.
The ETP provides institutional investors with access to bitcoin through a liquid, regulated vehicle without the complexity of keys, digital wallets, or cryptocurrency exchanges.
It is 100% collateralized with actual bitcoin holdings that are stored using an institutional-grade custody solution provided by Copper.
The ETP comes with a fixed annual fee of just 0.21% which is 44 basis points cheaper than its closest rival, the Global X Bitcoin ETP (BT0X GY), and 179 basis points cheaper than Europe’s largest bitcoin ETP, the $300 million BTCetc – ETC Group Physical Bitcoin ETP (BTCE GY).
The ETP’s low price tag is achieved by participating in collateralized lending agreements which serve to cover operational costs. Loans are executed through institutional-grade partners, are overcollateralized, and are monitored daily to protect the interest of the ETP’s shareholders.
This year has proven to be a difficult time for crypto investors with bitcoin down around 72% from its high of $67,580 in November 2021. As of 3 July, the price of one bitcoin was trading at $18,960.
According to 21Shares, these challenging market conditions are what inspired the firm to introduce a ‘Crypto Winter’ suite of which the core bitcoin ETP is the first product. In addition to low-cost long-term crypto exposures, 21Shares also plans to build out the suite with bear-market-oriented products for shorter-term tactical allocations.
Arthur Krause, Director of ETP Product at 21Shares, said: “Given the current market environment, many investors are looking to ‘buy-the-dip’ and generate the maximum potential long-term return. Our Crypto Winter Suite will provide ways for investors to dip their toes in the water at some of the lowest costs on the market.”
Hany Rashwan, CEO and co-Founder of 21Shares, added: “While we’re experiencing a tougher market today, interest in the long game of cryptocurrency has not wavered. We’ve seen investor demand for low-cost exposure to this asset class and the 21Shares Bitcoin Core ETP – the first product in our new suite – does just that, at the most competitive pricing in the world.”