Europe welcomes 4 new crypto-ETPs tracking Bitcoin, Ethereum, Cardano, etc.

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Now that institutional investors have moved into the cryptocurrency realm, an increasing number of sophisticated investment products are being introduced to the market for their specific needs. In the absence of a legitimate market in the United States due to regulatory bureaucracy, asset managers are focusing on the European front. Especially since investors simply cannot get enough of cryptocurrency-backed exchange traded products (ETPs) on the continent.

Earlier today, an ETP crypto-basket suite was launched by asset manager WisdomTree on Swiss exchange SIX and Frankfurt-based Börse Xetra. This was accompanied by Invesco’s entry into the European ETP market via its Bitcoin ETP spot, also listed on Deutsche Börse.

WisdomTree’s ETP trio follows proprietary indices developed by the company and is called WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT) and WisdomTree Crypto Mega Cap Equal Weight (MEGA).

BLOC is for investors who want broad exposure to the crypto market, with the fund tracking established digital assets that encompass 70% of the industry’s total market capitalization. These include the best Bitcoin and Ethereum (ETH) tokens, as well as the major altcoins Litecoin, Bitcoin Cash, Cardano (ADA), Solana (SOL), and Polkadot (DOT).

On the contrary, those looking for altcoin exposure can go for WALT. It follows all of the above except BTC and ETH.

As the name suggests, the latest fund is designed for those who are particularly interested in the best players in the market. The MEGA fund gives a weighting of 50% each to the two mega-cap cryptocurrencies, Bitcoin and Ethereum. With a total spend ratio of 0.95%, MEGA is the ETP of the cheapest physically replicated cryptocurrency basket in Europe, according to the company.

The funds can be traded on stock exchanges in the 12 countries of the European Union, as well as in Switzerland and Norway.

As for Invesco’s physical Bitcoin ETP (BTIC), it is a physically backed ETF that will track the Bitcoin CoinShares hourly benchmark index. It should be noted that Invesco very recently abandoned its deposit of a Bitcoin Futures ETF in the United States. At the time, he blamed the country’s regulators for imposing unnecessary hurdles.

Recent reports have also claimed that other asset management giants on the continent, such as Fidelity and UBS, will also follow in Invesco’s footsteps. Especially since the assets of European ETPs and mutual funds with cryptocurrency exposure exceed $ 11 billion.

According to MorningStar data, European crypto funds generated an average 12-month return of 461.7% at the end of October and an annualized return of 116.3% over three years.

The same report also found that ETPS backed by cryptocurrencies fared much better than those backed by traditional assets. Not a single one could beat the top 20 crypto products in European markets last month.


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