ETP pedigree lies behind bitcoin best of breed product
CoinShares | Best Bitcoin Issuer - Townsend Lansing, Head of Product at CoinShares believes that bringing CoinShares’ experience in the digital currency markets, plus the team’s ETP experience – four members, including Lansing and Chief Revenue Officer Frank Spiteri were previously at ETF Securities – to bitcoin and other digital assets has helped them produce best of breed products in the space.
“Our products are best of breed and we are very competitive on fees,” he says. “In addition to our bitcoin and ethereum products, we recently launched an innovative, fully transparent, first to market opportunity for investors to access staking awards in the digital asset market, that hadn’t been offered yet. We have a diverse product palate, and our spreads have been consistently good compared with the competitors which given it is a good proxy for demand, and is a metric that institutions look at directly.”
CoinShares has a key partnership in Germany with Scalable and its sizeable client base helps to provide liquidity, Lansing says.
“Despite being relatively late in physical products, we have managed to not only keep up but also out pace our competitors.”
CoinShares is a listed company in Sweden, has a direct cryptocurrency desk and has been trading cryptocurrencies since 2013. The firm also has a venture capital business where they support equity opportunities in the space. “It all gives us a huge advantage in terms of understanding the market,” he says.
“The way we approach bitcoin as product providers reveals a lot of similarities to gold – gold is an apt comparison for bitcoin,” he says.
The firm has expanded beyond the two largest cryptocurrency assets of bitcoin and ethereum into staking products, which give the opportunity for investors to cash in on certain verticals in the crypto market, Lansing says, such as proof of stake protocols.
“Staking allows users to earn additional coins traditionally reserved for crypto specialists,” he explains. “We are including it in ETPs that allow investors to participate in those staking awards and we see that market as a big opportunity this year.”
“We remain an access tool for investors who want to invest in crypto. For a lot of investors, the hassle and complexity of opening your own wallet is daunting. It’s very similar to gold where an investor wants an access tool to give them gold, wrapped in a security traded on an exchange.”
Lansing believes that bitcoin adoption will continue apace. “It remains an asset of interest for a lot of institutional investors who are interested to see how it functions in a higher interest rate environment. We will continue to see adoption across the industry for bitcoin.”