BTCE trading volume on Deutsche Börse reaches the level of traditional ETFs

Trading volume of the first centrally cleared Bitcoin-based exchange-traded product, BTCetc Bitcoin Exchange Traded Crypto (BTCE), has risen to the level of popular European index funds. The Financial Times reports.

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In the first 11 days of January, the instrument listed on Deutsche Börse recorded an average daily turnover of €57 million.

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Data: Financial Times, Deutsche Börse.

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The Bitcoin ETP turnover is comparable with the popular iShares Global Clean Energy UCITS ETF (INRG) and far exceeds the performance of the other 1,800 exchange-traded products listed on Deutsche Börse.

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“The BTCE structure has increased the attractiveness of cryptocurrency investments for institutional investors who avoid unregulated platforms and non-traditional asset custody arrangements,” said Stefan Kraus, head of the ETF segment at Deutsche Börse.

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The issuer of the exchange-traded product was ETC Group, led by Bradley Duke.

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“Institutions are actively adding Bitcoin-based instruments to their portfolios to hedge against the devaluation risk of major currencies,” said Duke.

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On Wednesday, ETC Group issued Bitcoin-backed exchange-traded notes (ETNs) on SIX in Switzerland, denominated in dollars, pounds sterling and Swiss francs.

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What is a cryptocurrency ETF?

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VanEck and 21Shares also offer ETNs and ETPs on Deutsche Börse. The SIX listing includes 34 crypto exchange-traded products from six issuers.

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In October last year, the UK’s Financial Conduct Authority banned the sale of crypto-derivatives and exchange-traded notes to retail traders.

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