New York-based Global X has introduced its first digital asset ETPs in Europe with the launch of two low-cost products providing directly backed exposure to bitcoin and ethereum.
The ETPs offer low-cost direct access to bitcoin and ethereum.
The Global X Bitcoin ETP (BT0X GY) and Global X Ethereum ETP (ET0X GY) have been listed on Deutsche Börse Xetra in euros.
Bitcoin and ethereum are the two largest cryptocurrencies globally with market capitalizations of $767 billion and $322bn, respectively.
Collectively, they represent approximately 62.9% of the total market capitalization of the 100 largest crypto assets globally.
The ETPs are aimed at providing institutional investors with access to bitcoin and ethereum through liquid, regulated vehicles without the complexity of keys, digital wallets, or cryptocurrency exchanges.
The ETPs are 100% collateralized with actual bitcoin and ethereum holdings that are stored using institutional-grade custody solutions provided by Coinbase Custody International.
Each ETP comes with a fixed annual fee of 0.65%, making them the cheapest directly backed bitcoin and ethereum exchange-traded products in Europe.
The closest competitors for the bitcoin ETP include the recently launched Fidelity Physical Bitcoin ETP (FBTC GY), which comes with a fixed annual fee of 0.75%; and the €240m WisdomTree Bitcoin ETP (WBIT GY) and €100m Invesco Physical Bitcoin ETP (BTIC GY), both of which cost 0.95%.
Other low-cost directly backed ethereum ETPs in Europe include the Iconic Physical Ethereum ETP (IETH GY) and €40m WisdomTree Ethereum ETP (ETHW GY), both of which are priced at 0.95%.
According to Global X, the introduction of these two crypto ETPs underscores the firm’s long-term confidence in the digital assets theme. Global X also offers the Global X Blockchain UCITS ETF (BKCH LN) in Europe which provides thematic exposure to companies that stand to benefit from the increased adoption of blockchain technology. BKCH launched in January with an expense ratio of 0.50%.
Rob Oliver, Head of Business Development at Global X, said: “Cryptocurrencies offer a path to invest in the potential of a permissionless, decentralized, and transparent infrastructure. Backed by blockchain technology, cryptocurrencies can scale, revolutionize, and improve traditional sectors within our economic, political, and socio-cultural landscape.
“Global X has continued to embody its philosophy of striving to offer investors something beyond ordinary, reflected in the firm’s move to launch its first crypto offering in the European market. We’re thrilled to bring European investors access to bitcoin and ethereum in the secure and regulated ETP wrapper.”