Crypto ETP issuer ETC Group has announced the launch of three crypto exchange-traded products tracking the performance of Avalanche, Cosmos, and Polygon.
New Crypto Investment Vehicles
According to a report by ETF Stream, the latest investment vehicles – ETC Group Physical Avalanche ETP (AVAL), the ETC Group Physical Cosmos ETP (ATME), and the ETC Group Physical Polygon ETP (MTCE) – will track the price of the AVAX, ATOM, and MATIC.
The three new products were unveiled via white-label ETF issuer HANetf and listed on the Six Swiss Exchange and the Deutsche Boerse with total expense ratios (TERs) of 1.95%.
The latest addition by ETC Group takes its tally of crypto ETPs to eight. The British firm earlier launched ETPs tracking the value of Bitcoin Cash (BCH), Ethereum (ETH), Solana (SOL), Cardano (ADA), Polkadot (DOT), and Litecoin (LTC).
Following the development, Bradley Duke, founder and co-CEO of ETC Group, commented,
“Investors are increasingly interested in adding some of the newer, innovative cryptocurrencies to their portfolios – especially those amassing large market cap. The addition of these ETCs offers investors high quality, physically-backed digital assets, underpinned by our partnerships with liquidity providers to deliver liquidity and tight trading spreads.”
ETPs Dominate in Europe
ETPs are slowly becoming a very popular way for institutional investors in Europe to gain access to the cryptocurrency industry. Much of the interest has been fueled by the meteoric rise of Bitcoin in the past few years.
The continued embrace from establishments such as Ruffer Investment Company or financial institutions like – JPMorgan, Goldman Sachs, UBS – which have purchased these investment vehicles for an increasing number of clients, has also driven the interest in crypto exposure. With growing demand, the types of ETPs being listed have also amplified.
Earlier this month, ETC Group and HANetf unveiled Europe’s first metaverse ETF – ETC Group Global Metaverse UCITS ETF – under the ticker “METR.” It was listed on London Stock Exchange.
More recently, asset manager Fidelity International announced the launch of two new Bitcoin ETPs on the Zurich-based SIX Swiss exchange. The head of ETFs at Fidelity, Nick King, stated that the products will enable its clients in Europe to obtain access to the cryptocurrency “in a secure and convenient way.”
While ETFs have struggled to impress stringent regulatory compliances, ETPs, on the other hand, are dominating in Europe because their structure is often the only option that accommodates the guidelines.