Introducing the New ETP on Bitcoin (BTC) by ETC Group
Discover the latest product offering from ETC Group, the Core Bitcoin ETP (BTC1), designed for long-term investors looking to track the benchmark closely. This ETP is tailored for global institutional investors with specific liquidity and risk management requirements.
Key Features of the ETP on Bitcoin (BTC)
- The ETC Group Core Bitcoin ETP (ticker BTC1; ISIN DE000A4AER62) caters to long-term buy-and-hold investors worldwide, with a focus on accuracy and reliability.
- ETC Group has a track record of managing over $1.5 billion in assets, showcasing their expertise in the crypto investment sector.
- BTC1 boasts a Total Expense Ratio (TER) of 0.30%, offering cost efficiency advantages in the European market. It tracks institutional-level Bitcoin prices using CF Benchmarks to ensure precise tracking of BTC price movements.
- This global spot product provides ample liquidity in the primary market, serving the US, European, and Asian markets during various trading windows.
- Utilizing a unique Tri-NAV methodology, BTC1 offers extended primary market liquidity, allowing institutional investors to access BTC spot liquidity across different markets.
- Institutional investors can trade their holdings over an extended period due to the three price determinations during the day, expanding market liquidity across various time zones.
The Role of ETC Group in the Digital Asset Sector
Learn more about ETC Group, a provider of high-level investment products in the digital asset sector, based in Germany.
- ETC Group’s Exchange Traded Products are physically backed, bridging traditional regulated financial markets with the crypto market by offering ETPs on major cryptocurrencies like Bitcoin and Ethereum.
- With a history of pioneer projects, ETC Group launched the first Bitcoin ETP in Europe with centralized clearing, listed on the German stock exchange XETRA. BTC1 follows suit, issued in Germany with primary listing on XETRA, ensuring complete physical coverage and fungibility with the underlying asset.
- The company stores digital assets at Zodia Custody, a reputed European provider of institutional-grade cold wallet custody, ensuring banking-level compliance and governance standards.
Insights from Industry Leaders
Explore the perspectives of key figures at ETC Group and Zodia Custody on the launch of BTC1.
“At ETC Group, we aim to revolutionize the cryptocurrency investment sector with the introduction of BTC1. This globally-oriented Bitcoin ETP offers extended liquidity and risk management features necessary for our clients. We take pride in leading the market and believe BTC1 can cater uniquely to institutional investors.” – Tim Bevan, CEO of ETC Group
“BTC1 marks a significant milestone in Bitcoin investment products, tailored for benchmark-conscious and long-term investors. It sets a new standard in the Bitcoin ETP market, combining cost efficiency, accuracy, and extended primary market liquidity.” – Chanchal Samadder, Product Manager at ETC Group
“The launch of BTC1 by ETC Group signifies another innovation in the digital asset space. This product meets institutional demands for secure and compliant exposure to digital assets, furthering the growth of the sector.” – Julian Sawyer, CEO of Zodia Custody
Understanding Deutsche Börse XETRA and the ETP on Bitcoin (BTC)
Delve into the operations of Deutsche Börse, managing the Frankfurt Stock Exchange, along with its electronic trading platform, XETRA.
- Deutsche Börse operates XETRA, the electronic trading platform where 90% of stock trades in Germany occur. The Frankfurt Stock Exchange, dating back to 1585, is now one of the largest stock exchanges globally and the third-largest in Europe.
- XETRA features a dedicated section for crypto ETNs, offering investors access to products like BTC1, a low-cost exposure to Bitcoin using the institutional reference rate of the Bitcoin CF from CME (BRR) as the benchmark market.
- BTC1, physically guaranteed and regulated, is now available on the Frankfurt Stock Exchange.
Importance of Benchmark and Liquidity in BTC1
Discover why benchmark and liquidity are significant for products like BTC1 and how it sets itself apart in the market.
- Liquidity in Bitcoin is dispersed across multiple exchanges, complicating price determination for investors. BTC1 aims to provide a robust benchmark that aggregates this liquidity, utilizing the BRR index and its variants BRRY and BRRAP.
- By leveraging these regional benchmarks, BTC1 offers institutional investors accurate price monitoring and access to three liquidity pools over a 14-hour period, surpassing traditional ETFs and ETPs with an 8-hour window.
Hot Take: Embracing Innovation in Crypto Investments
Explore the dynamic landscape of crypto investments and stay informed about revolutionary products like BTC1, catering to the evolving needs of institutional investors worldwide.
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