Swiss SIX Exchange, Switzerland’s main stock exchange, continues to expand its crypto products with a new Bitcoin (BTC) exchange-traded product or ETP.
On January 13, SIX launched trade the BTCetc Bitcoin ETP (BTCE), a new crypto ETP product issued by the London-based investment company 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 offers holders a claim on a predetermined amount of BTC.
ETC Group specializes in building 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.
SIX is one of the world’s largest ETP trading platforms with a large number of crypto investment products. After listing the the world’s first crypto ETP At the end of 2018, SIX actively introduced various ETPs, including several products supported by 21Shares. In July 2020, SIX listed the Bitcoin Capital Active ETP, an actively managed ETP that trades BTC against 14 top altcoins such as Ether (ETH).
An ETP is a type of security that is priced derivatively and traded on the basis of investment instruments 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.
While crypto ETPs are increasingly appearing 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 asset manager VanEck becoming the first company to File for a Bitcoin ETF in July 2018. The US Securities and Exchange Commission has withdrawn many ETF efforts, including two requests by the founders of Gemini Cameron and Tyler Winklevoss.
In the end, these applications were ultimately turned down by regulators, many of whom still believed the crypto industry was not mature enough to support an ETF. The United States Securities Exchange has also raised concerns about crypto asset volatility and the issue of custody versus a Bitcoin ETF.
Despite many failed attempts, the crypto industry continues to make efforts to list a Bitcoin ETF on a major exchange. On January 11, Arxnovum Investments, Canadian investment fund manager submitted a prospectus for a Bitcoin ETF with Canadian securities regulators.