ETC Group said its physically backed Bitcoin and Ethereum products have been the top exchange-traded products (ETP) for inflows, daily turnover and spreads in Europe this year.
The BTCetc – ETC Group Physical Bitcoin (BTCE), which was the first cryptocurrency product on Deutsche Boerse’s Xetra platform when it went live last year, and the Physical Ethereum ETC (ZETH), which arrived last month.
BTCE has attracted inflows of US$459.7mln in the first three months of the year, with daily turnover of US$51.158mln nearly double its nearest of its seven rivals.
After being launched on March 8 2021, ZETH has reached AU$40mln in assets under management (AUM) and is already established as the most liquid Ethereum ETP products on Xetra with daily turnover of $916,720, ETC group said.
Following the success of both products, ETC Group launched the first Litecoin ETP on Xetra on 14 April.
Part of this success of BTCE and its ETP siblings is that they trade at a lower premium or discount to the price of Bitcoin or Ethereum than rivals in Europe and North America, ETC Group said, which it attributed to the “deep pool” of world class liquidity providers and authorised participants.
All three ETPs were launched using HANetf’s distribution platform, which has recently surpassed US$2.5bn in AUM.
Bradley Duke, chief executive of ETC Group, said the three ETPs are designed to provide investors “with a safer and more transparent way to gain exposure to cryptocurrencies and are delivering phenomenal growth as demand surges”.
“They track the price of the underlying asset closely and provide institutional investors with liquid and central counterparty cleared products. The growth of AUM, liquidity and efficient tracking of the underlying crypto markets is resonating strongly with European investors.”
Hector McNeil, co-Founder and co-CEO at HANetf, attributed the success of BTCE to I enabling investors to benefit from Bitcoin performance while avoiding concerns about the technical challenges of buying and storing cryptocurrencies.
“The performance of ETC Group’s Physical Ethereum ETC is more evidence that ETC Group is an acknowledged market leader in designing investment solutions as demonstrated by the performance of its products. I have watched the crypto markets transition to being used en masse by institutional investors real time since we helped launch BTCE with ETC Group.”