Regulated Bitcoin ETPs Skyrocket, Coinshares Cites ‘Unprecedented Interest from Institutional Investors’

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Sweden-based XBT provider Coinshares recorded an exchange of XBT certificates worth around $ 202 million on the market’s first day of trading in 2021. On the same day, the Bitcoin exchange-traded product BTCE recorded a trading volume of $ 100 million.

Coinshares Group is a European company dedicated to crypto financing and exchange traded products. The Bitcoin Exchange Traded Notes (ETN) provider is approved by the Swedish FSA, and the company’s digital currency ETNs are traded on Nasdaq Nordic in Stockholm.

According to Coinshares, the first day of trading in the market in 2021, the company’s Bitcoin certificates were worth $ 202 million, shattering previous records. “Coinshares had the highest trading volume in any crypto ETP listed in Europe,” the company said.

Frank Spiteri, Coinshares’ chief revenue officer, said the company had seen tremendous demand, and much of it came from among institutional investors.

“We are seeing unprecedented interest in Bitcoin from institutional investors,” said Spiteri. “With asset managers, private banks and European institutions trying to add Bitcoin to their portfolios, our ETPs are the natural choice.”

In addition to daily revenue of $ 202 million, Coinshares has $ 2.9 billion in assets under management (AUM). Coinshares CEO Jean-Marie Mognetti says the company has seen a change in the past six months.

“The narrative shift around Bitcoin over the past six months has been profound. Investors used to see attribution to Bitcoin as a risk. Now there is a risk of not allocating Bitcoin, ”added Mognetti.

Alternative investment options from companies such as Coinshares, ETC-Group, Grayscale and others allow investors to get involved in Bitcoin without holding the asset directly.

This week, at the beginning of 2021, ETP provider ETC-Group also posted record numbers for BTCE, the company’s exchange-traded product, which is traded on the German stock exchange (XETRA). BTCE had a record trading volume of over $ 100 million on January 4th. BTCE also has an AUM of around $ 350 million after launching in June 2020.

“Bitcoin has seen phenomenal interest as the price rose from $ 20,000 in mid-December to $ 31,000 yesterday,” said Maximilian Monteleone, director of business development at ETC Group. “Investors appear to be switching to Bitcoin amid concerns about significant currency devaluation as a result of massive stimulus packages put forward by governments in response to the COVID crisis.”

What do you think of the record volumes for Bitcoin exchange-traded products? Let us know what you think on this matter in the comments section below.

Tags in this story

Bitcoin, Bitcoin (BTC), Bitcoin ETPs, btce, Coinshares, Coinshares Group, Deutsche Böerse Xetra, ETC Group, ETPs, European institutions, exchange-traded products, Frank Spiteri, institutional investors, Jean-Marie Mognetti, Maximilian Monteleone, economic stimulus packages

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