The Swiss stock exchange SIX is getting a new member. As of today, the new Bitcoin ETP from the asset managers of Coinshares is on board.
As long as Bitcoin ETFs, at least on the renowned stock markets of this world, are still dreams of the future, other Bitcoin ETPs will have to do. An ETN, for example, or the not yet regulated exchange-traded crypto (ETC; not to be confused with exchange-traded commodities).
As the news agency Bloomberg now reports, Coinshares is now launching a new of these Bitcoin ETPs on the Swiss exchange. That’s because digital asset management firm Coinshares announced yesterday (Monday) that it is launching the bitcoin ETP (exchange-traded product) on the SIX Swiss Exchange today, 19 January 2021 – under the ticker BITC.
ETFs are to be regarded as a sub-category of ETPs; both versions are listed financial products that run on an underlying asset. The price of the financial products is therefore dependent on the performance of the underlying. In the case of the new Bitcoin ETP from Coinshares, this is the Bitcoin price.
Such a Bitcoin ETP offers institutional investors in particular the opportunity to enter the crypto space more easily. Bloomberg quotes the chief financial officer (CFO) of digital asset manager Coinshares, Frank Spiteri, as saying:
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Bitcoin ETP: USD 200 million in AUM
Meanwhile, the company’s chief strategy officer (CSO; chief strategist), Meltem Demirors, tweeted today (Tuesday) that Coinshares was starting 2021 with such a „bang“. The volume of assets under management (AUM) used in the ETP would thus amount to 200 million US dollars at the start of the Bitcoin ETP. If these figures prove to be true, this would correspond to just under 5 percent of the company’s total assets under management of 4 billion US dollars.
Meanwhile, the Swiss exchange had already listed the world’s first cryptocurrency ETP a few years ago, in November 2018, as BTC-ECHO also reported – the Amun Crypto ETP.
Up until today’s latest bitcoin ETP, other crypto ETPs have been listed on the Swiss exchange, but an ETF has not been included so far. So it remains to be seen whether Coinshares‘ latest move represents a further step in the direction of bitcoin and crypto ETFs. However, it will certainly give investors hope – and Coinshares is one of the most prominent players in the crypto space.