ETC Group’s bitcoin ETP reaches $1bn AUM

Feb 22nd, 2021 | By | Category: Alternatives / Multi-Asset

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The BTCetc Bitcoin Exchange Traded Crypto (BTCE GY) has reached $1 billion in assets under management, just eight months after it debuted on Deutsche Börse in June 2020.

Bradley Duke, CEO of ETC Group

Bradley Duke, CEO of ETC Group.

While asset growth has been helped by the meteoric price rise in the underlying asset – bitcoin is up from $9,800 at the product’s inception to north of $50,000 today – the ETP has consistently experienced monthly net creations, including bumper inflows of $278.2m in February month-to-date.

Bradley Duke, CEO of ETC Group, commented: “We are delighted that BTCE has surpassed the $1 billion AUM milestone in just eight months since first listing on Xetra as the world’s first centrally cleared, 100% physically backed bitcoin ETP.

“It was always the goal of ETC Group to list quality products which not only faithfully track price movements in the underlying asset, but that also adhere to the complex and exacting standards of the institutional investor.”

BTCE has become one of the go-to vehicles for European professional investors to gain efficient exposure to bitcoin with Duke noting that there have been several trading days where hundreds of millions of dollars in the ETP have been traded.

According to Duke, the ETP’s success reflects the product’s careful design across multiple dimensions including security, accessibility, and liquidity, all with the institutional investor in mind.

Duke said: “We focussed on over-engineering the security elements of BTCE to address areas that we knew investment committees would focus on, putting investor security always front and centre of all product development with innovations like an Independent Administrator with veto rights over operational transactions and the fact that all BTCE is 100% backed by bitcoin immediately when issued.

“But building security into the product was not the only objective. We know that on-exchange liquidity is massively important to all investors but especially ones executing trades of size. We have worked with world-class liquidity provider partners to ensure consistently tight spreads on exchange and ample liquidity.”

BTCE is likely to continue benefitting from demand growth with recent research from ETC Group indicating that ETPs are the vehicle of choice for over half (53%) of European professional investors seeking bitcoin exposure, while almost nine in ten investors (87%) expect to increase their allocation to the cryptocurrency this year.

Duke concluded: “There is no doubt that institutions are now increasingly active in bitcoin ETPs like BTCE. Almost on a daily basis, we are hearing of more large banks, asset managers, and corporates moving into bitcoin for the growth opportunity and also as a hedge against inflation.”

BTCE is available to trade on Xetra and SIX Swiss Exchange and comes with an expense ratio of 2.00%. It was brought to market in collaboration with HANetf which is responsible for marketing and distribution.



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