Fees for Bitcoin funds fall in the middle of the crypto winter

FONDSMANAGER reduce the costs for stock exchange-traded products in order to lure investors back into the investment class in the middle of the ongoing crypto crash.

The cryptocurrency specialist 21shares, a Swiss group, has launched a new vehicle that is pursuing Bitcoin's price, the competitor-and even his own flagship products-undercut to seduce investors who are trying to survive the bear market.

The market launch takes place in the middle of a painful sale for everything that has to do with crypto, whereby Bitcoin's price fell from its highest stalls in November by $ 70 to $ 7:430 p.m. and the market value of the top 500 crypto token from a maximum of less than 1 trillion $ broke from $ 3.2 trillion.

The new listed securities from 21Shares has a total cost rate of only 0.21 percent. This is below the last round of costs as companies such as Fidelity and Global X offered between 0.4 and 0.7 percent bound to Bitcoin. It is also a sea from the fee of 1.49 percent that is collected by 21 -shares $ 164 million flagship Bitcoin ETP (ABTC).

"Some of our customers are more cost-conscious than others, so we worked very hard to develop the most cheapest crypto ETP in the world by far," said Hany Rashwan, CEO and founder of 21shares. "We focus on the development of bear market products."

However, the Zurich group's Bitcoin Core ETP (CBTC) has a catch. In contrast to some competitors, it will be able to give part of his Bitcoin stock, and would probably do so to make a profit despite the low fees.

In addition, the income of 21 shares and not to the fund investors, since cryptocurrency ETPs do not fall below the European OGAW fund regime, which prescribes stricter restrictions on securities loan. Rashwan said that there are currently no coins, but added: "It is very possible that this will be the case in the next one or two months. We will give opportunistic."

Rashwan said that loans with security - Bitcoin, Ether or USD - coin would be covered, a so -called "stablecoin" that corresponds to at least 115 percent of the credit value and is evaluated twice a day at the current market price. A stable coin is coupled to a traditional currency like the dollar. Rashwan described excessive loans as "incredibly safe".

DAVID trainer, Chief Executive of the Investment Research Group New Constructs, said that the structure of the loan of 21share's "seemed reasonable", but believed that the risks of a potential failure of the borrower remained.

"The more [Crypto] sinks and remains low, the more we will see that certain companies are overexposed," he said. The crypto hedge fund manager Three Arrows Capital, based in Singapore

Rashwan said the introduction was only the first rate of the "Crypto Winter Suite" of 21shares, which is intended to help investors survive.

His plans include risk-adjusted crypto ETPs that offer a certain protection against losses if you do without some potential profits "so that investors can have more confidence in investments at this point".

The products that probably cover Bitcoin, ether and possibly some wider crypto indices can have similarities with the buffered or defined result stock ETFs that prove to be popular in the USA.

Despite the cryptocrisy, the muffled enthusiasm for related ETPs remains. The 126 global crypto ETPs, which are monitored by Trackinsight, have had net inflows of $ 282 million this year. Their total assets are $ 5.9 billion.

Although the wealth of 21shares of a maximum of $ 3 billion in November 2021 dropped to $ 1 billion, Rashwan said that the total number of shares for its ETPs was on an all -time high, which again means net inflows.

"[Crypto] will change the world and is here to stay. There are many investors, including institutional investors who have missed the last two bull runs. We are starting to see many institutional investors who put their toe in and see whether time is ripe."