BTCetc Exchange Traded Bitcoin benefits enormously from the Bitcoin all-time high. The exchange-traded Bitcoin product (ETP) reports a record in trading volume.
The reason for this is the current all-time high of Bitcoin. The Head of Business Development of the ETC Group, Maximillian Monteleone, says:
Bitcoin has seen phenomenal interest as the price rose from $ 20,000 in mid-December to $ 31,000 […]. Investors seem to be moving towards Bitcoin as they worry about major fiat currencies devaluing as a result of massive stimulus packages being put in place by governments in response to the COVID crisis.
Because the BTCE is tradable on the German Xetra exchange, investors would not have to worry about the risks that would arise from unregulated crypto exchanges. In addition, the ETC is traded like a traditionally securitized security, with which it is deposited with the corresponding broker.
The BTCE is structured like a conventional ETP. The designation of the ETC does not refer to the sub-grouping of the Exchange Traded Commodity, but to Exchange Traded Cryptocurrency. You don’t invest in raw materials or precious metals as is usual with conventional ETCs, in this case the base value is Bitcoin. It is therefore a modified form of the ETC that is adapted to cryptocurrencies.
Another prominent example of a Bitcoin ETP is provided by the US investment company VanEck . They announced the launch of an in-house Bitcoin ETN in November last year. With the new investment product VanEck Vectors Bitcoin ETN, the asset manager now wants to enable institutional investors and private investors in Germany to participate in its price development without buying BTC directly. The whole thing is also processed via Xetra.
The asset manager is now going one step further and is attempting the Herculean task of getting the first Bitcoin ETF approved in the USA. So far, all previous advances have been rejected by the SEC.
A few years ago, crypto ETPs on traditional exchanges were unthinkable. In the meantime this seems to be changing more and more. So one uses the infrastructure of the old world with securities accounts, WKN or ISIN and central securities depository etc. This may seem like a step backwards for crypto enthusiasts. Nevertheless, there is an increasing demand on the investor side, which justifies the new product issues. The crypto and traditional financial markets are thus moving closer and closer together and enabling ever greater inflows of funds into the crypto market. The rapid development of Bitcoin should accelerate this process.