More asset managers confirm interest in the introduction of crypto products

fidelity, UBS and State Street Global Advisors have confirmed that, like the competitors Blackrock and Investco, they check the introduction of products that enable engagement in cryptocurrencies such as Bitcoin

The assets in European stock market-traded products and investment funds with cryptocurrency engagement have exceeded 10.5 billion euros, according to Morningstar data, which shows the potential attractiveness of these products for asset managers.

XBT, part of Coinshares, is the largest provider in Europe with a fortune of 5.4 billion

Matteo Andreetto, Head of the SPDR Exchange Traded Funds business for SSGA for Europe, the Middle East and Africa, said: “We are very clear and evaluate the way the space develops.

"Customers not only ask about cryptocurrencies, but also specifically about SPDR crypto products. They like the fact that we are a robust, safe couple."

fidelity said that it was "close to the development of cryptocurrencies" [. . . ] as part of a more comprehensive examination of the potential for digital assets and the distributed Ledger technology behind it ”.

"Fidelity International, as expected, explores the potential of this technology for the benefit of customers," added Fidelity.

Clemens Reuter, Global Head of ETFS at UBS Asset Management, said: "[Cryptocurrency is] an area that everyone has to look at at the moment." However, he added: "To date, we have not decided to bring something on the market."

In May, Investco Ignites Europe announced that the commitment of digital assets for ETPs are “examined”.

Jose Garcia-Zarate, Associate Director, Passive Strategies at Morningstar, said he is expecting more cryptocurrency products to be launched as part of the “Gimmicky” trend.

"ETFs are suitable for this type of engagements," he added.

However, the asset managers also pointed out the hurdles when entering the cryptocurrency area.

Reuter pointed out that investments in cryptocurrencies for UCITS funds are not yet permitted.

Andreetto said that SSGA would not put on a ETF until the group was "safe" to reach the "very high bar" to sit next to their other ETFs and to have "all functions of" [a] SPDR product ".

"The change to an ETP would be a deviation for us," he adds.

European ETPs and funds that offer commitment to cryptocurrencies achieved an average return of 461.7 percent in the 12 months to the end of October. You have achieved an annualized return of 116.3 percent for over three years, as Morningstar data show.

but Garcia-Zarate said investors should be “careful with cryptocurrency products what they want”.

Investors "need a very incoming diligence" to understand how cryptocurrencies and the associated appointment markets work, he said.

*Ignites Europe is a intelligence service published by FT Specialist for experts from the asset management industry. It covers everything, from the introduction of new products to regulations and industry trends. Test versions and subscriptions are available at Igniteseurope.com .