Tesla’s USD1.5bn bitcoin purchase fuels huge spike in trading in Europe’s top bitcoin ETP

Since Tesla’s USD1.5 billion purchase of bitcoin on Monday this week, between 8 and 9 February (Monday and Tuesday), USD171.523 million was traded in BTCetc Bitcoin Exchange Traded Crypto (ticker BTCE), a leading Bitcoin ETP, which is listed on Deutsche Boerse and the SIX stock exchanges and passported for sale across Europe. 

On Monday, USD108.744 million was traded in the ETP, the third highest daily amount since it first listed on 8 June 2020.

Hector McNeil, spokesperson for BTCetc Bitcoin Exchange Traded Crypto, says:“Tesla’s purchase of Bitcoin is yet another huge endorsement for the cryptocurrency from a large corporate or institutional investor.  They tend to take a much longer-term view of their investments than retail investors, and this bodes well for the future valuation of the cryptocurrency.”

BTCE gives investors several benefits over investing directly in Bitcoin. Traded on regulated markets, investors can buy and sell the product in the same way they would when trading conventional shares or ETPs. BTCE is structured as an ETC that is physically backed by bitcoin. Each unit of BTCE gives the holder a claim on a predefined amount of Bitcoin - a structure very similar to physically-backed gold exchange traded commodities, and allows investors the option for redemption in Bitcoin.  For every unit of BTCE, there is Bitcoin stored in regulated, institutional-grade safe custody.

The entire ETC structure is based on a transparent and verifiable process to ensure that the provenance of all Bitcoin in custody has been strictly vetted.

Investors aren’t required to engage with the technical challenges of purchasing and storing Bitcoin such as setting up a cryptocurrency wallet or trading on unregulated crypto exchanges and there is no need to manage cryptographic keys or engage with blockchain technology. Units of BTCE are safely held with the investor’s securities broker or bank, thus removing the risk of losing the investment because of, for instance, lack of knowledge of how cryptographic keys work. Bitcoin is a highly volatile product, and your capital is at risk.

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