New York-based ETF supplier Wisdomtree has launched a bodily backed bitcoin exchange-traded product (ETP) on Switzerland’s SIX inventory alternate. In response to Wisdomtree, the brand new product is just not cash-settled like most ETPs traded on the SIX alternate because the BTCW funding product will likely be settled in BTC.
Additionally learn: 7 Crypto Exchange-Traded Products Now Live on Swiss Bourse
Wisdomtree Launches Bodily Backed Bitcoin ETP on Switzerland’s Principal Inventory Alternate
On December 3, the American agency Wisdomtree Investments (NASDAQ: WETF) introduced the launch of a brand new BTC-based exchange-traded product (ETP) that will likely be traded on Switzerland’s SIX inventory alternate. The brand new product will likely be completely different from the opposite cryptocurrency ETPs traded on SIX, as a result of the BTCW product will likely be bodily backed by bitcoins held in storage. The ticker BTCW will compete with seven other cryptocurrency ETPs traded on SIX that primarily monitor a basket of digital belongings or monitor the costs of single cryptocurrencies.
The Switzerland-based agency Amun AG is behind many of the crypto ETPs on SIX, which embody cash-settled ETPs for a basket of cash, BTC, ETH, XRP, and BCH. The ETF supplier Wisdomtree is the seventh largest ETF agency within the U.S. and has been providing exchange-traded merchandise for practically twenty years. Wisdomtree’s newest announcement says traders will get publicity to BTC. The corporate additionally highlighted that with BTCW, traders will get “entry to institutional-grade storage options without having to set it up with a custodian themselves.”
“Now we have been monitoring cryptocurrencies for a while and are excited to deliver traders safe entry to this growing asset class,” Wisdomtree’s Head of European-based Merchandise, Alexis Marinof, said. “Wisdomtree has a historical past of bringing revolutionary funding themes to a broad market by way of institutional-class merchandise, permitting traders to take exposures in difficult-to-access asset courses — we see many parallels between the cryptocurrency house and commodities on this regard.”
The introduction of cryptocurrencies in an ETP construction will allow traders to search out new methods to introduce digital belongings into portfolios whereas nonetheless counting on the protection and safety that they’ve come to anticipate from Wisdomtree.
‘Bringing Cryptocurrencies to the ETP Construction’
This isn’t Wisdomtree’s first expertise coping with physically-backed ETPs as the corporate launched the world’s first physically backed gold ETP in 2003. Furthermore, the corporate has the biggest ETF by way of AUM in Europe as nicely as a result of it makes use of European equities, however removes the volatility tethered to the alternate charges between the USD and EUR. The BTCW settlement will likely be dealt with by the Worldwide Central Securities Depository (ICSD) and Wisdomtree goals to “supply liquidity like every other exchange-listed safety.” Wisdomtree notes that bringing digital currencies to the ETP construction could deliver the opportunity of liquidity centralization, which in flip might “profit the underlying digital asset.”
“Cryptocurrencies are doubtlessly the subsequent asset class to profit from elevated curiosity once they turn into accessible in an ETP construction,” Wisdomtree’s capital markets and expertise product growth government Rafi Aviav defined throughout the announcement. “Now we have developed an answer which addresses the difficulties traders face in accessing digital belongings and are bridging the hole between the underlying decentralised on-line blockchain expertise and conventional funding buildings.”
Aviav believes that the ETP system might invoke “new dimensions” into crypto markets, which embody bolstering institutional-grade custody options. The Wisdomtree government thinks that incorporating digital forex buying and selling into commonplace brokerage accounts will make markets “extra liquid and clear.” At press time, Wisdomtree’s BTCW product is live on Switzerland’s principal inventory alternate, however the funding car is simply obtainable to institutional traders. Wisdomtree has additionally not too long ago printed various educational resources for institutional and retail traders on the way to put money into digital currencies and the “rise of cryptocurrencies as a brand new asset class.”
What do you consider the brand new Wisdomtree bodily backed bitcoin ETP that’s buying and selling on the Switzerland alternate SIX? Tell us what you consider the connection between cryptocurrencies and ETPs within the feedback part beneath.
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Picture credit: Shutterstock, SIX Alternate, and varied Wisdomtree on-line paperwork.
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