Bitcoin ETPs are hitting the UK market. ETC Group's BTCE Bitcoin will be listed on the Aquis Exchange, both in London and Paris.
This is the first time that a Bitcoin ETP has hit the UK market or a European MTF (multilateral trading facility, an alternative to traditional stocks).
The trade will be available from June 7.
Most Traded Bitcoin ETP Arrives in UK
The ETC Group's ETP had already debuted in Germany on Deutsche Börse and then on the Swiss Six Exchange in Switzerland. Till the date, is one of the most traded Bitcoin ETPs in 2021, reaching a volume of $ 459.66 million in the first quarter, 41% of the total Bitcoin ETP in circulation.
The ETC Group selected Aquis as one of the most regulated exchanges, which operates in 15 European markets and allows the negotiation of 1,700 different securities.
Bradley Duke, CEO of ETC Group, said:
“We have seen many investors recognize the benefits of including secure crypto ETPs like BTCE in their portfolios as an effective hedge against inflation. ETC Group offers exposure to bitcoin, ether and litecoin through our 100% physically backed cryptocurrency ETPs, and bringing our flagship bitcoin product to Aquis Exchange was a logical step as institutional demand for crypto exposure grows by all the world".
Alasdair haynes , CEO of Aquis Exchange, added:
“Investors increasingly accept digital assets as a true asset class and give them a place in balanced investment portfolios. Aquis has a history of innovation and is responding to customer demand for these assets in an agile way that allows operators to access them in a liquid and regulated environment. "
WisdomTree also brings Bitcoin ETP to Europe (but not the UK)
WisdomTree has also included his Bitcoin ETP (BTCW) and Ethereum ETP (ETHW) on Euronext, the markets of Paris and Amsterdam. Both were already featured in Börse Xetra (Germany) and SIX (Switzerland).
Jason guthrie, Director of Digital Assets, Europe, WisdomTree, said:
“Listing on Euronext opens up more access points for investors to conveniently allocate and trade both BTCW and ETHW. Since we launched our digital asset platform in 2019, we have seen a lot of development in the space. This milestone represents the growing acceptance of cryptocurrencies, the evolving European regulatory landscape, and the latest sign that digital assets are here to stay. The willingness of regulators and exchanges to list cryptocurrency ETPs is giving this growing and popular asset class more credibility. This development will encourage institutional investors, operating through Euronext, who have been waiting for new signs of acceptance before making their first allocations to digital assets. "
Alexis Marinof, Head of Europe, WisdomTree, added:
“Our commitment to supporting investors on their journey to digital assets is reinforced by the BTCW and ETHW listings on Euronext. We have built the best digital asset platform in its class, comprised of the most investor friendly bitcoin and ether ETPs. Our heritage provides a level of comfort and expertise that investors cannot get from other physically backed cryptocurrency ETP providers. This translates into a market leading product from price point to unmatched product structure. "
Jonathan Steinberg, CEO of WisdomTree, concluded:
“We know that digital assets and blockchain are the most important thing for our clients and we want to help them understand and navigate the space. Accessibility has been a challenge for many investors, but as another major exchange facilitates access, opportunities continue to open up for investors and barriers to adoption are decreasing. "
Why Invest in a Bitcoin ETP
Bitcoin ETPs are derivative products dedicated to institutional investors. In fact, the people who buy them do not buy Bitcoin (or Ethereum) directly, but a share with an underlying in the cryptocurrency . Bitcoins are generally cold stored by the company.
Therefore, ETPs allow institutional investors not to have to worry about storing their cryptocurrencies. However, ETPs, even if they do not millimetrically reflect the price of the underlying crypto, are still considered high risk products due to market volatility.