Bitcoin Monthly Report | November
and corporate adopters seeking the benefit of Bitcoin’s Treasury Reserve Asset
characteristics are gaining more widespread awareness as demand for a ‘scarcity asset’ accelerates
- BTCE, our Bitcoin ETF, AUM surpasses $100
continues to make new highs versus a number of EM currencies and the ongoing
debasement of DM currencies is seen as a driver of Bitcoin in USD and EUR
- The Bitcoin price
ranged between a max of $13,850.10 on 31st October to a min of $10,547.70
on 2nd October
- Month over month, the
Bitcoin price increased from $10,706.96 on 30th of September to $13,850.10 on 31st
- As of 10th November,
the Bitcoin Exchange Traded Crypto ETC stands at just over $106m of assets
under management. AUM grew due to increased interest from the investment
community, alongside a 27.39% increase in the USD price of Bitcoin.
Bitcoin Monthly Performance
performance is no guarantee of future performance.
Source: Bloomberg, HANetf
Performance based off XBT price
*12 Month figures based on 31.10.19
What Has Driven This Performance?
As mentioned last
month, the rapidly evolving correlations within and between traditional
asset-classes, together with the ease-of Bitcoin access through Bitcoin ETFs and ETCs, is driving rapid adoption. To date, BTCE is the fastest
growing exchange traded product on Deutsche Borse. Bitcoin has worked
higher through successive bands of technical resistance and there is growing
clamour for it to retest the highs of December 2017.
ESG is gaining
traction with US investors, following Europe’s lead. The environmentally
superior characteristics of bitcoin mining are attracting inflows to BTCE.
Bitcoin and BTCE Performance
Total Return NAV to Date (up to 31/10/2020)
Bitcoin Exchange Traded Crypto – BTCE*
*BTCE inception was on 08/06/2020
** Bitcoin price is based off XBT daily performance from Bloomberg
Performance before inception is
based on XBT daily performance from Bloomberg. Past performance of XBT does not
represent actual performance and should not be interpreted as an indication of
actual or future performance. Past performance for XBT is in USD. Past performance is not an
indicator for future results and should not be the sole factor of consideration
when selecting a product. It is provided for illustrative purposes only.
Investors should read the prospectus of the Issuer (“Prospectus”) before
investing and should refer to the section of the Prospectus entitled ‘Risk
Factors’ for further details of risks associated with an investment in these
Bloomberg / HANetf. Data as of 31/10/20
a powerful 27.39% rally driven by accelerating inflows as October brought a
repeat of September’s confusing price-action across traditional asset
classes. The month began with a continuation of the rally from
September’s correction- the second test of the impulsive rally in risk assets
since the Covid-lows of March. Prevailing optimism about the release of a
Covid vaccine kept concerns about the resurging case-numbers at bay and the Q3
earnings season in the US got off to a very strong start, with 86% of companies
reporting they beat estimates in the first week. The second
half of October, however, saw markets lose upside momentum as the hitherto
localised lock-downs from governments in Europe and the US started to give way
to the harder measures seen in the first wave of the pandemic and the ensuing
implications for a ‘Double Dip’ to the Great Corona Recession.
historically bullish on a Republican election victory, had come to terms with
the concept of a ‘Blue Sweep’ as influential strategists and economists,
including Goldman Sachs’ Abby Cohen, suggested it might be ‘no bad thing’.
This quick ‘coming to terms’ with a Democrat victory scenario began to give way
as markets looked deeper into the scenario analysis surrounding a mixed result
with the Presidency and Senate controlled by different parties and hence less
able to provide quick stimulus to markets. Like September, there was a
notable break-down in the expected correlations between asset classes.
Treasuries again failed to rally during the 8% drawdown in the S&P, with gold
and ‘Quality’ stocks failing to perform. Volatility picked up across
asset classes. The term-structure of implied volatility on the S&P
rose from a relatively benign flat ‘curve’ on the 12th October, to being
relatively steeply downward-sloping by the end of the month as demand for
short-term downside protection displaced upside call demand as the S&P fell
through successive retracement support levels. Option prices
also moved higher in US Treasuries despite the muted price-action of the
bond-market as several large macro trades were put on to position for the
return of inflation and yield curve control despite the Fed’s average inflation
targeting policy. This ongoing uncertainty about both the macro backdrop,
as well as the efficacy of the instruments and strategies to navigate it,
helped drive a powerful shift into Bitcoin via BTCE as both EM and Developed
Market multi-asset investors seek to position portfolios through the US
election and beyond.
seeking the benefit of Bitcoin’s Treasury Reserve Asset characteristics are
gaining more widespread awareness as demand for a ‘scarcity asset’
accelerates. A number of research studies are under way comparing the
energy efficiency of ‘Digital Gold’ to its physical cousin. Together with
the absence of contaminants like Mercury in the mining process, the ESG aspects
of Bitcoin will increasingly be in focus with institutional allocators as the
US catches up with Europe in ethical investing.
block-access to institutional investors via the liquidity of the underlying
Bitcoin market and has also seen growing demand for BTCE from large Bitcoin
holders who can finance their positions with FCA-regulated ITI Capital’s prime
broker. This provides a more attractive counterparty credit risk for
corporate Bitcoin holders requiring other traditional banking partners for
their operations. There has been a basis-change in the perceived career
equity risk of asset allocators who now need to have an answer to one of the
safest and most efficient ways to access Bitcoin. When you trade Bitcoin ETFs and ETCs your capital is at risk
is increasingly being viewed as a safe haven asset, especially in times of
unprecedent expansion of the money supply in major currencies like the US
dollar and Euro in order to fund the massive stimulus packages being approved
by governments to assist economies hit by COVID-19. Bitcoin is being correctly seen
as hard currency with capped supply and BTCE gives investors exposure to
Bitcoin on a regulated exchange without the headaches of needing to find and
maintain secure storage for Bitcoin as BTCE securities are stored safely in the
investors brokerage account.” – Bradley Duke, Co-Founder & CEO of ETC Group
BTCetcBitcoin Exchange Traded Crypto (Ticker: BTCE) is an exchange traded
cryptocurrency (ETC), Bitcoin ETP that
tracks the price of Bitcoin.
ETC is 100% physically backed by Bitcoin, it trades on Deutsche Börse´s XETRA,
and is centrally cleared providing investors with one of the safest and most
liquid ways to gain exposure to Bitcoin. Each unit of BTCE gives the holder a
claim on a predefined amount of Bitcoin.
is issued by ETC Group and marketed and distributed by HANetf.
remember that the value of your investment may go down as well as up and past
performance is no indication of future performance.
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