Ever since the first cryptocurrency-backed exchange-traded products were launched in the European market in 2018, asset managers have been getting increasingly creative with the kind of exposure they provide to investors. Earlier today, Bitcoin Capital AG announced the launch of two new ETPs on the SIX Swiss Exchange, which will be pioneers in providing the active management of these products.
The FiCAS Active Bitcoin ETP (BTCB) and FiCAS Active Ethereum ETP (ETHB) will be actively managed by crypto asset manager FICAS AG, according to a press release. Investors from Switzerland, Liechtenstein, and the European Union (excluding Hungary) will have access to these products.
The statement also noted that active management will help the products “counter negative price fluctuations” and eventually overcome the market cap of the two largest cryptos, Bitcoin and Ether. This is intended to attract a wider range of cryptocurrency investors by reducing the risk factor behind these investments.
Bitcoin Capital AG’s Chairman Dr. Luca Schenk opined that crypto assets will soon be part of the diversification strategy of many investment portfolios, adding,
“The two new products with the most relevant cryptocurrencies as underlying may, through their active management, improve the overall portfolio risk by reducing underlying volatility.”
Bitcoin Capital AG is a family office and FiCAS AG subsidiary based in Zug, Switzerland. It had earlier launched the actively managed Bitcoin ETP “Bitcoin Capital Active ETP” on the SIX Swiss Exchange.
The reduction of risk exposure is indeed one of the primary factors behind the increased demand for crypto-backed ETPs worldwide and their increased acceptance by several regulators.
After a green light from Australian regulators, Zurich-based 21 Shares has entered a partnership with ETF Securities today to introduce spot Bitcoin and Ether ETFs to Australian investors, subject to final regulatory approvals.
Top asset manager Fidelity will also be launching a BTC spot ETF for the Candian market soon, as reported by Eric Balchunas yesterday. He also noted that this “will easily be the biggest asset manager to date with a bitcoin ETF.”
Even with all of the innovation and acceptance, along with Bitcoin recurrently reaching new all-time price highs in recent months, the American Securities and Exchange Commission (SEC) has remained reluctant toward allowing any crypto spot ETFs to be launched in the country.
While this irked many investors in the country, it also led asset managers like those mentioned above, to shift their focus on more enthusiastic and accepting markets.