ETC Group unveils bitcoin ETP with extended liquidity

May 1st, 2024 | By | Category: Alternatives / Multi-Asset

Digital asset investment specialist ETC Group has launched a new directly backed bitcoin ETP in Europe, offering enhanced liquidity compared to competing products.

ETC Group unveils bitcoin ETP with extended liquidity

The ETP offers exposure to bitcoin while bridging primary market liquidity across US, European, and Asian time zones.

The ETC Group Core Bitcoin ETP (BTC1 GY), which comes with an expense ratio of 0.30%, has been listed on Deutsche Börse Xetra in euros.

ETC Group notes that bitcoin’s liquidity is vast but fragmented across multiple exchanges, complicating price determination for investors.

To combat this, ETC Group has introduced a unique ‘Tri-NAV’ methodology with BTC1 providing three price determinations throughout the day (instead of just one), bridging primary market liquidity across US, European, and Asian time zones.

The ETP tracks an aggregate of the CME CF Bitcoin Reference Rate Index and its US and Asian variants. These indices are the most widely adopted benchmarks used by regulated institutional capital, including the majority of US-listed spot bitcoin ETFs.

The Tri-Nav approach extends BTC1’s primary market liquidity over a significantly longer period than any other regulated spot bitcoin vehicle worldwide. This methodology effectively provides access to three liquidity pools/valuation points spanning 14 trading hours, in contrast to the single liquidity pool/valuation point and 8-hour trading window typical of other global ETFs and ETPs.

The ETP maintains the same product structure as ETC Group’s other products, including 100% physical backing and full fungibility with the underlying. The underlying bitcoin tokens are stored by Zodia Custody using an institutional-grade cold-storage custody solution and featuring a bank-grade compliance & governance framework.

Tim Bevan, CEO of ETC Group, commented: “With BTC1, we are bringing the first globally orientated bitcoin ETP to market, with the extended liquidity and risk management features that our clients need. We are proud to be launching yet another market first, and we believe that BTC1 has the potential to uniquely serve institutional investors with best-in-class attributes.”

Chanchal Samadder, Head of Product at ETC Group, added: “BTC1 represents a significant milestone in the evolution of bitcoin investment products. Designed with benchmark-conscious and long-term investors in mind, BTC1 offers a unique blend of cost-efficiency, accuracy, and extended primary market liquidity, setting a new standard in the bitcoin ETP market.”

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