- The
biggest force in markets remains Monetary Policy, accelerating the debasement
of DM currencies and creating demand for Bitcoin and Bitcoin ETFs as has happened
already across EM;
- The risk-reward
for professional asset managers is dramatically more supportive for Bitcoin
than the last time the price of Bitcoin was at these levels;
- BTCE trades at a significantly lower spread to NAV than other bitcoin access
products.
Performance Review
- The Bitcoin price
ranged between a max of $19,378.61 on 30th November to a min of $13,619.76
on 2nd November, a growth of 42.08%.[1]
- At the end of November,
the Bitcoin Exchange Traded Crypto ETC stands at $175m of assets under
management. AUM in USD terms grew by 95.2% in November alongside the 42% growth
in the USD price of Bitcoin.
BTCE saw a huge 40.8% rally in
November driven by accelerating inflows as institutional and corporate momentum
accelerated into Bitcoin and Bitcoin ETFs and ETPs. The ‘Everything Rally’ across asset classes
commenced from the confluence of a number of technical and fundamental
drivers.
November saw a substantial
groundswell of interest in BTCE from institutional asset managers. The Scarcity
Asset rationale for ‘why bitcoin’ became better understood - as did ‘why now’,
with allocators appreciating that the big difference between the last time
Bitcoin was at these levels in January 2018 and now is that they need to be
able to point to the best-in-class instrument to provide access to equity and
multi-asset mandates.
Bitcoin
Monthly Performance
|
November*
|
12 Month**
|
|
42.08%
|
151.33%
|
Past performance is no guarantee of future performance.
Source: Bloomberg, HANetf
Performance based off XBT price
*November figures based on 31.10.20 – 30.11.20
**12 Month figures based on 30.11.19 -30.11.20
Bitcoin and BTCE Performance
Total
Return NAV to Date (up to 30/11/2020)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
Since Inception
|
|
Bitcoin Exchange Traded Crypto – BTCE*
|
41.84%
|
65.10%
|
NA
|
97.80%
|
-
|
97.80%
|
|
Bitcoin**
|
42.08%
|
65.93%
|
105.81%
|
170.72%
|
151.33%
|
99.72%
|
*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
products. Source:
Bloomberg / HANetf. Data as of 30/11/20
Industry News
Global equities saw
their strongest performance on record with US stocks at the forefront. As
noted here, the preceding months had seen a near-record breakdown in
traditional cross-asset correlations. Together with the uncertainty of a
potentially disputed US election outcome akin to the Bush-Gore fall-out of late
2000, many institutional investors were underweight US equities, evidenced by
the low hedging activity that ITI saw ahead of the event. Many institutions
had not time to convene investment committees in time to respond to the
subsequent three consecutive Mondays of Covid-19 vaccine breakthrough news
following the election. This sparked a flurry of leading economists and
strategists to issue bullish outlooks for risk assets into 2021.
The Great Rotation
debate evolved into an acceptance of a primary ‘risk-on’ prevailing
dynamic as well as a secondary rebound of Value and Cyclical stocks
and sectors. The S&P quickly broke up to new highs through a potential
‘Triple Top’ since September. Whilst the Nasdaq took longer to follow
suit, investors returned to technology stocks on news that Tesla was to join
the S&P and Airbnb’s market debut. Gold and precious metals continued
to consolidate but expectations mounted for a more bullish paradigm ahead for commodities
on a return of inflation after the near 40-year bull-trend in bonds which has
left more than a quarter of global bonds in negative yield. ITI Capital
observes that the biggest force in markets remains the monetary policies of
the Fed et co. and the subsequent debasement of currencies has come to DM as it
came to EM in recent years. November saw mainstream financial analysts
incorporate Bitcoin into their traditional multi-asset research notes citing
the ‘debasement of fiat currencies’, hitherto the parlance of crypto players.
Outlook
With Bitcoin nearing
the December 17th All-Time High in US Dollar terms, expectations are mounting
for it to follow the currencies of the BRICS and other emerging markets to new
highs. There is much speculation about which is the most appropriate
fundamental valuation model for Bitcoin. It is currently c.3% of the
market valuation of gold ‘above ground’, with observers increasingly
extrapolating prices towards 5% and 10% equivalent levels.
BTCE is the world’s
first centrally-cleared Exchange Traded Product on bitcoin. It trades
within ‘basis points’ of the NAV of the underlying Bitcoin price. This is in
stark comparison to the incumbent US product that trades at a double-digit
percentage premium. This makes BTCE more acceptable to the investment
governance committees at large investors. ITI provides block-trading
access to institutional investors via the liquidity of the underlying Bitcoin
market as well as the ability for investors to finance their positions with the
counterparty credit risk afforded by FCA-regulated ITI Capital’s prime
broker.
"With BTCE, our mission was always to
bring investors a better way to invest in Bitcoin. We wanted a product that
would trade on a major exchange, was highly liquid, tracked the price of
bitcoin accurately, was fully fungible with bitcoin and was engineered with
investor security front and centre. We are proud of what we have achieved with
BTCE and the high trading volumes and spectacular rise in AUM means the investment
community is recognising BTCE as the best-in-class product for investment in
bitcoin." - Bradley
Duke, Co-Founder & CEO of ETC Group CEO of ETC Group
Product Details
BTCetcBitcoin Exchange Traded Crypto (Ticker: BTCE) is an exchange traded
cryptocurrency (ETC), Bitcoin ETP that
tracks the price of Bitcoin.
The
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.
BTCE
is issued by ETC Group and marketed and distributed by HANetf.
Please
remember that the value of your investment may go down as well as up and past
performance is no indication of future performance.
When trading a Bitcoin ETF or ETP your capital is at risk.
| Exchange |
BB Code |
RIC |
ISIN |
Currency |
Income |
| Xetra |
BTCE |
BTCE.DE |
DE000A27Z304 |
EUR |
Acc |