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), ETC Group Physical Cosmos ETP (ATME) and ETC Group Physical Polygon ETP (MTCE) – will follow 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%.
ETC Group’s latest addition brings its number of crypto ETPs to eight. The British company previously 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 latest and most innovative cryptocurrencies to their portfolios, especially those that accumulate a large market capitalization. The addition of these ETCs provides investors with digital assets high quality, physically backed, backed by our partnerships with liquidity providers to provide tight liquidity and 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 membership of institutions such as Ruffer Investment Company or financial institutions such as – JPMorgan, Goldman Sachs, UBS – which have purchased these investment vehicles for an increasing number of clients, has also generated interest in the exposure to crypto. With growing demand, the types of ETPs listed have also grown.
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.
Most recently, asset manager Fidelity International announced the launch of two new Bitcoin ETPs on the Zurich-based Swiss exchange SIX. Fidelity’s head of ETFs, Nick King, said the products will give his customers in Europe access to 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.
