ETPs are the most popular way for European institutional investors and wealth managers to invest in bitcoin, says new study
New research from ETC Group the company behind the BTCetc - Bitcoin Exchange Traded Crypto (BTCE), a physically backed bitcoin ETP which is listed on the Deutsche Boerse XETRA and SIX stock exchanges, and passported for sale across Europe, reveals that exchange traded products (ETPs) are the most popular way for European institutional investors and wealth managers to gain exposure to bitcoin.
Its research from 66 institutional investors and wealth managers across Germany, the UK, Italy, the Netherlands, Belgium and the Nordics, who collectively have an estimated USD63.5 billion in assets under management and exposure to Bitcoin, reveals that 53 per cent use ETPs to gain exposure to the cryptocurrency. This is followed by 23 per cent who said they use structured products, 21 per cent who use direct investment channels and 17 per cent who use hedge funds.
ETC Group’s research reveals nearly nine out of ten (87 per cent) of professional investors interviewed said they plan to increase their exposure to Bitcoin this year. Some 80 per cent said they expect the price of Bitcoin, which is currently USD48,000 per coin, to be over USD50,000 by the end 2021.
Bradley Duke, Co-Founder of BTCetc Bitcoin Exchange Traded Crypto ETC, says: “We welcome the exciting findings of this pan-European market research we commissioned. There are a growing number of investment vehicles open to investors looking to gain exposure to Bitcoin and other cryptocurrencies. ETPs have a number of advantages of some of these in terms of the liquidity and transparency which they provide, superior custodial services and more competitive fees.
"A product like BTCE is traded on major stock exchanges and is central counterparty cleared, can help institutional investors gain access to the cryptocurrency market. It also simplifies the process of allocating to Bitcoin. Investors bypass the technical challenges of purchasing and storing Bitcoin and the risk of trading on unregulated crypto exchanges. Through an exchange traded product, the investors aren’t required to engage with blockchain technology at all.
"BTCE has quickly become the most traded crypto backed ETP on the Deutsche Boerse and has no discount or premium which is inherent in BTC futures and US based BTC trusts. Given the consistent high liquidity and efficient tracking of the underlying BTC price we feel very confident that the investors institutional investors surveyed in this market research will see BTCE as the market access product of choice for their BTC exposure.”
BTCE is distributed and marketed by HANetf.