The trading volume of the first Bitcoin-based exchange-traded product with central clearing, BTCetc Bitcoin Exchange Traded Crypto (BTCE), has risen to the level of popular European index funds. This was reported by the Financial Times.
During the first 11 days of January, the average daily turnover Crypto Bull of the instrument listed on Deutsche Börse was €57 million.
Bitcoin-ETP’s turnover is comparable to the popular iShares Global Clean Energy UCITS ETF (INRG) index fund and far exceeds that of the other 1,800 exchange-traded products on Deutsche Börse.
„The BTCE structure has increased the attractiveness of cryptocurrency investments for institutional investors who avoid unregulated platforms and non-traditional asset holding systems,“ said Deutsche Börse ETF segment head Stefan Kraus.
The exchange-traded product was issued by ETC Group, led by Bradley Duke.
„Institutions are actively adding bitcoin-based instruments to their portfolios to hedge the risk of devaluation of major currencies,“ Duke said.
On Wednesday, ETC Group floated bitcoin-backed exchange-traded notes (ETNs) denominated in dollars, pounds sterling and Swiss francs on the Swiss SIX.
VanEck and 21Shares also offer ETNs and ETPs on Deutsche Börse. The Swiss exchange lists 34 cryptocurrency exchange products from six issuers.
As a reminder, last October the UK Financial Services Authority banned the sale of cryptocurrency-based derivatives and exchange-traded notes to retail traders.