Crypto ETF Sector Review

Crypto assets have boomed over the past year. 

Bitcoin traded as high as $40,000 as more institutional investors buy coins

The driving factors for this institutional investor uptake are: 

To hedge against inflation 
To diversify risk 
And the Scarcity of bitcoin 

Exchange-traded products (ETPs) offer investors the perfect way of gaining exposure to cryptocurrencies and is one of the fastest growing areas in the ETP space.

There are currently $3.2bn assets under management (AUM) across 19 crypto ETPs in Europe - with 4 listed in Sweden, 3 listed in Germany, 12 listed in Switzerland.

XBT Provider has the largest total Assets Under Management at $2.3bn with ETC Group, 21 Shares and Wisdom Tree making up the majority of the rest of the market,

The largest ETP is XBT Provider’s Bitcoin Tracker Euro (COINXBE). It has an AUM of $1.2bn and is the only crypto ETP in Europe to have over $1bn assets 

21Shares has the most diverse crypto ETP range with 11 strategies.  

This includes the 21Shares Crypto Basket Index ETP (HODL) which was the first ETP to list on the Six Swiss Exchange in November 2018 

With the increasing number of ETPs on the European market, market makers such as GHCO have started pricing the strategies. 

Their role is helping these newcomers set up the right way so that it benefits all stakeholders while ensuring tight spreads to encourage more investor flow. 

“There has been a massive resurgence in the cryptocurrency space over the past 12 months. Bid-ask spreads are still wide on crypto ETPs but we aim to change that. By bringing more competition, liquidity and fair pricing.”

Said Stefan Kaba-Ferreiro, head of trading at GHCO: