New study reveals ETPs are the most popular way for European institutional investors and wealth managers to invest in Bitcoin
research from ETC Group the company behind the BTCetc - Bitcoin Exchange Traded Crypto (ticker BTCE), the leading physically backed
Bitcoin ETP which is listed on the Deutsche Boerse XETRA and SIX stock exchanges,
and passported for sale across Europe, reveals that exchange traded products
(ETPs) are the most popular way for European institutional investors and wealth
managers to gain exposure to Bitcoin.
Its research from 66
institutional investors and wealth managers across Germany, the UK, Italy, the
Netherlands, Belgium and the Nordics, who collectively have an estimated $63.5
billion in assets under management and exposure to Bitcoin, reveals that 53% use
ETPs to gain exposure to the cryptocurrency.
This is followed by 23% who said they use structured products, 21% who use
direct investment channels and 17% who use hedge funds.
ETC Group’s research reveals
nearly nine out of ten (87%) of professional investors interviewed said they
plan to increase their exposure to Bitcoin this year. 80% said they expect the price of Bitcoin,
which is currently $48,000 per coin,
to be over $50,000 by the end 2021.
Bradley Duke, Co-Founder of
BTCetc Bitcoin ETC (ticker: BTCE) said: “We welcome
the exciting findings of this pan-European market research we commissioned. There
are a growing number of investment vehicles open to investors looking to gain
exposure to Bitcoin and other cryptocurrencies.
ETPs have a number of advantages of some of these in terms of the
liquidity and transparency which they provide, superior custodial services and
more competitive fees.
A product like BTCE is
traded on major stock exchanges and is central counterparty cleared, can help
institutional investors gain access to the cryptocurrency market. It also
simplifies the process of allocating to Bitcoin. Investors bypass the technical
challenges of purchasing and storing Bitcoin and the risk of trading on
unregulated crypto exchanges. Through an exchange traded product, the investors
aren’t required to engage with blockchain technology at all.
BTCE has quickly
become the most traded crypto backed ETP on the Deutsche Boerse and has no
discount or premium which is inherent in BTC futures and US based BTC trusts.
Given the consistent high liquidity and efficient tracking of the underlying
BTC price we feel very confident that the investors institutional investors surveyed
in this market research will see BTCE as the market access product of choice
for their BTC exposure. ”
BTCE Bitcoin ETC gives investors several benefits over investing
directly in Bitcoin. Traded on regulated markets, investors can buy and sell
the product in the same way they would when trading conventional shares or
ETPs. BTCE is structured as an ETC that is physically backed by bitcoin. Each
unit of BTCE gives the holder a claim on a predefined amount of Bitcoin - a
structure very similar to physically-backed gold exchange traded commodities,
and allows investors the option for redemption in Bitcoin. For every unit of BTCE, there is Bitcoin
stored in regulated, institutional-grade safe custody.
The entire Bitcoin ETC structure
is based on a transparent and verifiable process to ensure that the provenance
of all Bitcoin in custody has been strictly vetted.
Investors aren’t required to
engage with the technical challenges of purchasing and storing Bitcoin such as
setting up a cryptocurrency wallet or trading on unregulated crypto exchanges
and there is no need to manage cryptographic keys or engage with blockchain
technology. Units of BTCE are safely held with the investor’s securities broker
or bank, thus removing the risk of losing the investment because of, for
instance, lack of knowledge of how cryptographic keys work. Bitcoin is a highly
volatile product, and your capital is at risk.
BTCE is supported by a network of
world class Authorised Participants (APs) and Market Makers, experienced in
cryptocurrency markets as well as the ETP markets. The APs ensure on-exchange
liquidity and tight spreads, enabling traders to purchase in all sizes without
having to worry about market impact. Bitcoin can be a highly volatile
product. When you trade Bitcoin
ETFs and Bitcoin
ETCs your capital is at risk.
BTCE tracks the price of Bitcoin and is 100% physically
backed, providing investors with a safer and transparent way to gain exposure
to Bitcoin. BTCE has over $700 million AUM after launching in June
BTCE is distributed and marketed by
BTCetc- Bitcoin Exchange Traded Crypto - (BTCE)
1 BTCE = 0.001 Bitcoin (less fees)
100% physically backed by Bitcoin
BitGo Trust Company
Investors can redeem for Bitcoin or cash
Total Expense Ratio (TER)
200 basis points per annum