ETC Group launches first UK bitcoin ETP on Aquis Exchange
ETC Group, a specialist provider of digital asset-backed securities, is to make its BTCE bitcoin available to trade as of 7 June via the Aquis Exchange MTFs in London and Paris.
This is the first time a cryptocurrency exchange traded product (ETP) has been available for trading on any UK market or any European MTF. Trading will take place in GBP, CHF, Euro and USD, while clearing will be carried out by SIX x-clear as the sole CCP providing central clearing.
ETC Group’s own research shows 53 per cent of European professional investors prefer to trade Bitcoin via an ETP and by being available to trade on Aquis, BTCE will be reaching a wider group of investors and benefitting from Aquis’ unique and innovative trading features. ETC Group’s BTCetc - ETC Group Physical Bitcoin (BTCE) held its debut as the world’s first centrally cleared Bitcoin ETP on Deutsche Börse’s XETRA platform in June 2020, and then listed on SIX Swiss Exchange in January 2021. In 2021 it has been the top bitcoin exchange traded product (ETP) performer in Europe; inflows in Q1 hit $459.66 million – around 41 per cent of total inflows into the eight Bitcoin ETPs during the period – while daily turnover at USD51.158 million was nearly double its nearest rival.
Bradley Duke, CEO of ETC Group, says: “We have seen many investors recognise the benefits of including secure crypto ETPs like BTCE in their portfolios as an effective hedge against inflation. ETC Group provides exposure to bitcoin, ether, and litecoin through our 100 per cent physically backed cryptocurrency ETPs, and bringing our flagship bitcoin product to Aquis Exchange was a logical step as institutional demand for exposure to crypto grows around the world.”
Alasdair Haynes, CEO of Aquis Exchange, says: “Investors are increasingly accepting digital assets as a bona fide asset class and giving them a place in balanced investment portfolios. Aquis has a history of innovation and is responding to client demand for these assets in an agile way allowing traders to access them in a liquid, regulated environment.”
Marcus Harreus, Head SIX x-clear, says: “We are extremely proud to be chosen as the sole CCP to carry out the clearing services of this innovative initiative. Our strategy is to extend SIX x-clear across Europe as a leading CCP whilst recognising the importance of a robust oversight framework in order to deliver the best-in-class service for our clients.”
ETC Group selected Aquis due to its status as one of Europe’s largest regulated exchanges (by value traded) trading over 1,700 securities from across 15 European markets, with venues in both the UK and France. Aquis operates an innovative and cost-effective subscription model and does not allow non-client aggressive proprietary trading, which means its large liquidity pool is less subject to negative market impact. Aquis also has a particularly innovative Market At Close order type that allows users to get the mid-point price from the closing auctions. SIX x-clear was selected as the sole CCP for this innovative asset class given its robust risk modelling and mitigation processes to support this product in a cleared environment.
BTCE is supported by a network of world class Authorised Participants (APs) and Market Makers, experienced in cryptocurrency markets as well as the ETP markets. The APs ensure on-exchange liquidity and tight spreads, enabling traders to purchase in all sizes without having to worry about market impact. This latest BTCE listing is set against an investment backdrop where investors are recognising BTCE’s quality, as the most traded cryptocurrency ETP in Europe, which frequently in Q1 2021 displaced major ETFs in terms of top trading volumes on Deutsche Börse’s XETRA.
BTCE will be available on Aquis Exchange for professional investors only. It is issued by ETC Group and distributed by HANetf.