Exchange-traded products abound, but crypto is still waiting for an ETF

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Swiss SIX Exchange, Switzerland’s leading exchange, continues to expand its crypto products with a new Bitcoin (BTC) exchange-traded product, or ETP.

On January 13, SIX launched trading in BTCetc Bitcoin ETP (BTCE), a new ETP crypto product issued by London-based investment firm ETC Group. The newly listed ETP tracks the price of Bitcoin, offering investors a new way to gain exposure to the world’s largest cryptocurrency. Each BTCE unit provides holders with a claim on a predefined amount of BTC.

ETC Group specializes in creating new digital asset-backed securities and is backed by shareholders such as XTX Markets venture capital arm XTX Ventures and financial services firm ITI Capital.

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SIX is one of the largest ETP trading platforms in the world, listing a large number of crypto investment products. After listing the world’s first crypto ETP at the end of 2018, SIX has actively introduced various ETPs, including several products backed by 21Shares. In July 2020, SIX listed Bitcoin Capital Active ETP, an actively managed ETP trading BTC against 14 top altcoins like Ether (ETH).

An ETP is a type of security whose price is derived and traded on the basis of investment tools such as a commodity, currency, stock price, or interest rate. Unlike crypto exchange-traded funds, or ETFs, crypto ETPs are always 100% backed by the assets they track.

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However, as crypto ETPs appear more and more on exchanges, especially in Europe, the digital asset industry is still waiting for the first crypto ETF.

The crypto community has made numerous attempts to launch a crypto ETF in recent years, with investment management firm VanEck becoming the first firm to file a Bitcoin ETF application in July 2018. The United States Securities and Exchange Commission has withdrawn from many ETF efforts, including two nominations from Gemini founders Cameron and Tyler Winklevoss.

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Ultimately, these demands were ultimately rejected by regulators, many of whom still believed the crypto industry had not matured enough to support an ETF. The U.S. Stock Exchange has also expressed concern about the volatility of crypto assets and the issue of custody over a Bitcoin ETF.

Despite many unsuccessful attempts, the crypto industry continues its efforts to list a Bitcoin ETF on a major exchange. On January 11, Canadian investment fund manager Arxnovum Investments filed a prospectus for a Bitcoin ETF with Canadian securities regulators.