In the 11 days after the bright of the new year, BTCE recorded a trading volume of 57 million euros (76 billion won). ETP is designed to track the price movements of various indices and raw materials. It is generally similar to an ETF (listed index fund) that tracks underlying indices. With Bitcoin ETP, investors can aim to profit from price movements without having to directly hold Bitcoin.
BTCE trading volume is similar to that of ordinary ETPs or ETFs in Europe. This month’s record is only 1 million euros (1.3 billion won) less than INRG, the most traded ETP on the German exchange.
Managing assets of $433 million, BTCE has an operating cost of 2%. It is supported by a California-based trust company, Bitgo.
“BTCE is more attractive to institutional investors,” said Stefan Krauss, head of the Deutsche Boers ETF. There is no counter-party risk, you can avoid other restrictions that come with Bitcoin investment, and you don’t need to create a separate digital wallet. There is no need to use an institutionally incomplete cryptocurrency platform.”
“A lot has changed over the past six months,” said Bradley Duke, co-founder and president of the ETC Group, a BTCE manager. “Institutional investors are starting to see cryptocurrency as a safe haven.” “When money is released to boost the economy, the value of money falls, but virtual currency is starting to be recognized as an alternative. “We need a stimulus package, but there is a risk of inflation.”
On the 14th, the ETC Group announced that it has listed ETNs based on dollar, pound and Swiss franc on the Swiss Stock Exchange.