FiCAS launches world’s first actively managed crypto ETP on SIX

Jul 28th, 2020 | By | Category: Alternatives / Multi-Asset

FiCAS, a Swiss crypto investment management boutique, has launched the world’s first actively managed crypto ETP on SIX Swiss Exchange.

Ali Mizani Oskui, Founder of FiCAS

Ali Mizani Oskui, Founder of FiCAS.

The Bitcoin Capital Active ETP (BTCA SW) seeks long-term capital appreciation by trading the top 15 cryptocurrencies by market capitalization with the flexibility to move into fiat currencies (USD, EUR, or CHF) when considered prudent.

The allocation is discretionary and based on in-depth investment research, technical and fundamental analysis, proprietary algorithms, and artificial intelligence applications.

The ETP, which was issued by Bitcoin Capital, a Zug-based special purpose vehicle, and will be managed by FiCAS, has been listed in Swiss francs with a management fee of 2.00%.

It also comes with a performance fee of 20% based on returns above a high-water mark that has initially been set at the ETP’s issue price.

Ali Mizani Oskui, Founder of FiCAS, said, “Devising the world’s first actively managed crypto ETP marks an important milestone in our effort to deliver enhanced market returns for our clients over time. Based on our in-depth trading and analytical experience, actively managing our underlyings allows us to pre-empt and react to market movements through the discretionary buying and selling of crypto assets to steer risk-adjusted returns.

“Personally, I have built my expertise in crypto trading since 2013 with a strong track record in outperforming the market. I look forward to bringing my trading experience to global and institutional markets with this pioneering product.”

Mattia Rattaggi, Chairman of the FiCAS Board, added, “Amid the current market environment of historically low interest rates and global equity market volatility, we are seeing a real desire among investors to diversify into alternative asset classes. With this in mind, FiCAS’ pioneering ETP launch today, an industry-first achievement, is the ideal opportunity to pursue superior returns while expanding asset diversification. A discretionary managed ETP is a much more appropriate new instrument in the context of the still novice cryptocurrency market and further bridges the worlds of traditional and crypto finance.”

While the launch marks the introduction of the first actively managed crypto ETP, several issuers in Europe have entered the crypto space on the passive side. Swiss rival 21Shares has the most comprehensive offering of 11 crypto ETPs including six single-crypto ETPs, four multi-crypto ETPs, and a short bitcoin ETP.

WisdomTree and ETC Group have also introduced long bitcoin ETPs. The WisdomTree Bitcoin ETP (BTCW SW) is the cheapest with an expense ratio of 0.95%, while the BTCetc Bitcoin Exchange Traded Crypto (BTCE GY), which costs 2.00%, is the first centrally cleared bitcoin ETP, a feature that is likely to appeal to institutional investors.

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