With US bitcoin ETF in the floating, stock market-traded crypto products in Europe full

With US bitcoin ETF in the floating, stock market-traded crypto products in Europe full

Since the prospects for a physical Bitcoin ETF have come to a standstill in the USA, an already overcrowded market for stock market-traded cryptocurrency products (ETPS) heats up in Europe with a number of new notations.

According to Bloomberg Intelligence, ETPs, which are linked to digital assets, have exceeded tributaries of over $ 1 billion in Europe in Europe, whereby the demand does not show any signs of slowing down Data . In the week to February 11, according to Coinshares, European crypto system products of more than Data .

issuers say that the interest is not a surprise. The safety and convenience of crypto engagements via a regulated product is attractive for small investors-and often a necessity for institutional actors.

"There are many investors who do not want to open wallets on stock exchanges or otherwise want to act directly with crypto. They prefer to simply use the traditional access rails of their brokerage accounts," said Lansing, product manager at Coinshares. "This primarily drives the demand for them, in contrast to a direct investment in, let's say, Bitcoin."

fidelity International was the youngest issuer who offered a European ETP at the introduction of his Fidelity Physical Bitcoin ETP (FBTC) to Germany's German Studies Xetra at the beginning of this month. 21Shares, the largest ETP issuer in the world, has brought three new decentralized financial products (DEFI) to the European markets in the past few weeks.

The crypto assets that are based in Jersey have a variety of products that are traded on European stock exchanges, including two new ones that focus on staking opportunities. Other issuers, including Investco and Wisdom Tree, also have products in the European markets.

The setup can be a blessing for institutions with strict compliance rules in relation to cryptocurrencies.

"Institutions have all established their access rails well," said Lansing. "You have your risk committees, your lawyers, your compliance, you understand how securities markets work. I think the acceptance of institutional investors, from private banks to multi-asset investment funds, the speed of acceptance will benefit from your familiarity with the processing of engagement."

The ETP wrapper is often the only way for issuers to write down on European stock exchanges.

"It often violates the rules in Europe to have an ETF on a single asset," said Hany Rashwan, CEO of 21shares. "In Europe, they are either classified as traded goods or products traded."

The classification in the name of this type of investment vehicle is less important than the structuring of the products, said Rashwan.

"What investors ultimately are looking for is physically secure access to crypto in vehicles and wrapper, which are most sensible for this," said Rashwan.

All ETPs of 21 shares that are traded in Europe are physically stored, which enables the products to reproduce the price of the underlying assets more precisely.

In the USA, ETFs based on Bitcoin futures and market-traded trusts such as the Grayscale Bitcoin Trust (GBTC) are often criticized for not reproducing the price of the underlying asset. GBTC is often traded with a discount or serve compared to Bitcoin, while futures-based ETFs take the risk of rolling costs.

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The Post with Us Bitcoin ETF in Limbo, Crypto Exchange-Traded Products All the Rage in Europe is not a financial advice.