Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists 3 Crypto-Basket ETPs in Europe

Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe

After dropping its plan to launch a Bitcoin futures ETF in the US while pursuing a physically-backed ETF, Invesco launched a physically-backed bitcoin exchange-traded product (ETP) in Europe.

The Invesco Physical Bitcoin ETP (BTIC), which tracks the CoinShares Bitcoin Hourly Reference Rate index, is listed on the Deutsche Boerse. The ETP has a fixed annual fee of 0.99%.

Invesco has chosen the UK-based digital asset manager Zodia Custody for the custody of Bitcoin. The Custodian is registered with the FCA as a crypto asset business under the UK Money Laundering Prevention Regulations. Zodia was incubated by SC Ventures, the innovation arm of Standard Chartered, with Northern Trust as its co-investor, which will also act as the administrator for BTIC.

“We have been working on the product since the middle of 2018,” Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, told ETF Stream.

“In the last two to three years, we have been trying to structure a product that looked, from an institutional point of view, as close as possible to a traditional ETF like our gold structure, and that has been the driver of BTIC’s timeline.”

Asset manager WisdomTree also launched a trio of crypto basket ETPs in Europe, which are listed on the Swiss stock exchange SIX and Frankfurt-based Börse Xetra.

These ETPs track proprietary indices developed by WisdomTree. One of the indexes is the WisdomTree Crypto Market (BLOC) — which provides exposure to the most established crypto assets such as BTC, ETH, BCH, and LTC, but caps Bitcoin and Ether’s combined allocation to 75% to void overexposure to the top two cryptos.

WisdomTree Crypto Mega Cap Equal Weight (MEGA) meanwhile focuses only on Bitcoin and Ether.

WisdomTree Crypto Altcoins (WALT) is another index that focuses on altcoins like Solana, Cardano, Polkadot, BCH, and Litecoin.

BTC 0.94% Bitcoin / USD BTCUSD $ 57,830.11
$543.600.94%
Volume 32.38 b Change $543.60 Open $57,830.11 Circulating 18.89 m Market Cap 1.09 t
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ETH 3.51% Ethereum / USD ETHUSD $ 4,447.77
$156.123.51%
Volume 19.09 b Change $156.12 Open $4,447.77 Circulating 118.54 m Market Cap 527.25 b
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SOL 1.70% Solana / USD SOLUSD $ 204.23
$3.471.70%
Volume 2.11 b Change $3.47 Open $204.23 Circulating 304.18 m Market Cap 62.12 b
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ADA 0.26% Cardano / USD ADAUSD $ 1.60
$0.000.26%
Volume 1.8 b Change $0.00 Open $1.60 Circulating 33.31 b Market Cap 53.37 b
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DOT 3.67% Polkadot / USD DOTUSD $ 37.13
$1.363.67%
Volume 1.28 b Change $1.36 Open $37.13 Circulating 987.58 m Market Cap 36.67 b
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BCH 0.91% Bitcoin Cash / USD BCHUSD $ 575.65
$5.240.91%
Volume 1.09 b Change $5.24 Open $575.65 Circulating 18.91 m Market Cap 10.89 b
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LTC 3.08% Litecoin / USD LTCUSD $ 205.73
$6.343.08%
Volume 1.78 b Change $6.34 Open $205.73 Circulating 69.08 m Market Cap 14.21 b
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Author: AnTy

Crypto ETP Volume Surges in January as Institutions Flood the Market

Data shows that the trading volumes for crypto-denominated ETPs saw a significant surge in January 2021. Institutions also appear to be cutting their losses as the crypto market braces for a more significant pullback.

All eyes are on institutional crypto investors this week again, as it appears that some have been making significant plays to begin the year. In its recent weekly report, market data and metrics provider CryptoCompare has confirmed a spike in the volume of assets under management (AUM) in crypto-denominated exchange-traded products (ETPs).

Promising Numbers Across the Board

Per the report, there has been a staggering 93.7 percent increase in the AUM for crypto ETPs across the board. In nominal terms, crypto ETPs now holds an impressive $36 billion. Aggregate daily volumes also jumped above $1.5 billion, marking healthy institutional participation to kick-off 2021.

CryptoCompare noted that Grayscale Investments makes up a significant chunk of these figures, with its various investment trusts housing $22.6 billion, 63 percent of all capital invested into crypto ETPs. The New York-based asset management firm’s products were also found to have represented 64 percent of the entire industry’s ETP volumes, pushing $972 million in daily trading volumes.

Grayscale’s dominance in the institutional investment space has been nothing short of astonishing. The company, which operates several investment trusts for large-cap cryptos, has been the go-to source for institutions looking to get their bit of the crypto pie. As a result, its AUM has been on the rise for months.

Earlier this week, Danny Scott, the CEO of crypto exchange CoinCorner, confirmed that Grayscale purchased 16,244 BTC ($607 million) in 24 hours. Even with the threat of a liquidity crunch, the company has continued to suck up Bitcoins from the open market at incredible levels.

While Grayscale dominated trading volumes, the company’s products still trailed in the spot markets, as the premiums on its shares fell by 8 percent this month.

As for exchange-traded notes (ETNs), trade volumes almost tripled in January. These were dominated by the BTCE product from ETC Group, which saw nearly $50 million in daily trades.

The second-most traded ETN was the BTCW/USD ETN from WisdomTree, which had $7million in trading volumes, while VanEck’s Bitcoin Vectors saw $5 million in daily trades.

Profit-Taking from Investors

Although the commitments into crypto ETPs have been impressive, institutions are also staying vigilant as Bitcoin’s price begins a significant pullback.

Crypto fund provider CoinShares reported that institutional crypto products had seen $85 million in outflows this past week, asserting that some investors seem to be taking profits following Bitcoin’s bull run over the past month.

CoinShares noted a similar trend in Ether-derived investment products, with $3 million exiting the past week’s market.

Despite the strong profit-taking, institutional inflows are still strong, with $359 million entering crypto investment products this week. CoinShares noted that Bitcoin remains investors’ top prize, with the leading cryptocurrency representing 99 percent of all capital inflows this week.

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Author: Jimmy Aki