Digital asset manager CoinShares is launching a Bitcoin exchange-traded product (ETP) on the Swiss stock exchange, SIX Swiss Exchange. According to a Bloomberg report, the Bitcoin ETP will go live on Jan. 19 under the ticker symbol BITC. The custodian behind the ETP will be Komainu, a venture developed by Nomura Holdings and hardware wallet manufacturer Ledger.
The launch of the Bitcoin exchange-traded product comes amid a rising rally of the world’s largest cryptocurrency by market capitalization. Each ETP will be physically backed by 0.001 Bitcoin (BTC), currently worth $36 at the time.
Frank Spiteri, chief revenue officer at CoinShares, tells Bloomberg:
“A lot of institutional clients have a very strong due-diligence process, and we wanted to bring to market a best-in-class product to embrace that demand. We are ready, as of January, to embrace the forthcoming demand from institutional clients.”
As per the Bloomberg report, CoinShares roughly holds $4 billion in AUM, a 300% increase since August of last year. The latest Bitcoin ETP will be launched with $200 million in assets under management.
Koimanu will be the custodian of the ETP and will charge 0.98% of their holdings in fees.
CoinShares is an investment firm that specializes in digital assets. It already has a separate group of ETPs via its subsidiary, XBT Provider. The XBT Provider's Ether Tracker One and Bitcoin Tracker One are even listed on the Nasdaq Stockholm exchange. As of Jan. 4, 2021, XBT Provider reported $2.9 billion of value in its assets under management.
SIX Exchange has significantly expanded its crypto offerings since listing the world’s first ETP three years ago. In July 2020, the exchange-listed the Bitcoin Capital Active ETP, an actively managed ETP trading BTC against 14 top altcoins.
A Bitcoin ETP is a security that tracks the value of the digital assets. They are almost similar to stocks. Although, they are traded on traditional exchanges that have opening and closing bells rather than on crypto exchanges which are run 24/7. Exchange-traded funds are one type of ETPs.