Another Bitcoin exchange-traded product (ETP) is scheduled to launch on the Aquis Exchange in London later this month, hot on the heels of a similar ETP that began trading on the exchange today.
In an announcement on Monday, Aquis said 21Shares, a Swiss crypto ETP issuer, will make its Bitcoin ETP available to institutional investors in the UK to trade on the exchange as part of a partnership with GHCO, a market-maker and liquidity provider specialising in exchange-traded funds (ETFs).
Aquis said the ETP is designed to provide UK institutional investors with “secure and cost-effective exposure to Bitcoin without the associated Bitcoin custody and security challenges”, adding that each unit of the ETP will represent exposure to roughly 0.00035 Bitcoin entitlement.
The exchange also said it is planning to cooperate on bringing more of 21Shares’ suite of crypto products to UK investors, including ETPs in other prominent digital currencies including Ethereum, Ripple, Tezos, Polkadot, Cardano and Stellar.
“We have been working alongside 21Shares on this project as we are keen to respond to institutional demand in the UK for digital assets”, Aquis chief executive Alasdair Haynes said in a statement.
ETC Group Bitcoin ETP begins trading in UK first
The 21Shares Bitcoin ETP follows the arrival of ETC Group’s BTCE Bitcoin ETP, which became available for trading on the exchange on Monday via Aquis’ multilateral trading facilities in London and Paris.
ETC’s ETP is the first crypto-connected asset to be traded on any UK market, with transactions to take place in sterling, Swiss francs, Euros and US dollars while clearing will be carried out by The Swiss Stock Exchange.
Announcing the ETP last week, Aquis said the listing of the Bitcoin ETP will allow the product to reach “a wider group of investors” and follows the ETPs listing on Deutsche Borse‘s XETRA platform in June last year as well as the Swiss Exchange in January.
The product is also the top Bitcoin ETP performer in Europe so far this year, with inflows hitting US$459.7mln in the first quarter.
Crypto assets not going away, says Aquis boss
Speaking to Proactive, Haynes said that despite the reservations and criticism of cryptocurrencies by financial regulators and central banks, digital currencies as an asset class will continue to exist into the future in some form or another.
“I don’t know which type, but digital currency will exist for the long term. On that basis, we must allow our clients to invest”, Haynes said.
The CEO added that the listing of Bitcoin ETPs on Aquis is a “game-changer” and that in the long run asset such as the ETPs will be “valuable to asset managers”.
“Asset managers are looking to invest in digital assets, maybe 2-3% of their portfolio, and they need a mechanism that allows them to make that investment…The new economy is based on digitalisation…investments in the future will not just be based on traditional equities but a whole range of new assets…we think there is a tremendous opportunity out there”, Haynes said.