A $200 million bet on Bitcoin: when the stock market updates

19. Januar 2021

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Bitcoin for the punter – The cryptosphere and Bitcoin (BTC) continue their gradual integration into traditional finance. Today, it is the digital asset manager CoinShares that comes to the SIX Swiss Exchange with a brand new Bitcoin FTE.

A physical FTE backed by 100% real Bitcoins
Exchange-traded products (ETPs) are financial products that can be traded Bitcoin Union on the stock exchange. Although they are similar to ETFs, they do not have the same level of regulatory requirements.

The SIX Swiss Exchange, based in Zurich, Switzerland, will host a new Bitcoin-based ETP, offered by CoinShares, which will have the particularity of being physical, i.e. truly 100% backed by Bitcoins in reserve.

This new financial instrument, called CoinShares Physical Bitcoin, is being launched on 19 January under the BITC index, as Blommberg points out.

A new investment opportunity in BTC for institutional investors
In addition to the Bitcoin price, this physical FTE of CoinShares will have an underlying of 0.001 Bitcoin for each of its Units. The Units therefore have a price of approximately $37 at the time of writing.

The custodian, which will be the depositary of these Bitcoins, is Komainu: a company established in partnership between CoinShares, the Japanese bank Nomura Holdings and the harware wallets manufacturer Ledger.

„Many institutional investors follow a very demanding due diligence process, and we wanted to bring to market a first class product to meet this demand (…). We are ready, as early as January, to respond to this demand from institutional clients. »

Frank Spiteri, CRO of CoinShares
With already $4 billion in crypto-assets under management, CoinShares is opening up to a new clientele of stock market professionals.

Financial products backed by real cryptomoney seem to be gaining momentum, according to today’s news and the recent results of the Grayscale investment fund. Bitcoin is seeing new wealthy investors enter its market, which is already on the rise.