In Europe, Crypto Exchange-Traded Products are Taking Off

As more investors conduct due diligence and seek to participate in crypto ETPs, the number of issuers issuing them in Europe is increasing.

According to a leading industry analyst, the crypto exchange-traded product (ETP) market in Europe is growing more competitive in comparison to North America and Latin America, and issuers are launching more of the investment vehicles as demand grows.

Valour Inc., a Swiss asset management, listed two new exchange-traded funds (ETFs) on the Nordic Growth Market, which operates in Sweden, Finland, Denmark, and Norway, on Monday. Valour Terra and Valour Avalanche ETPs have been added to the firm’s offering.

ETPs are proving to be a popular tool for institutional investors in Europe to obtain access to cryptocurrency. ETPs have been purchased by a growing number of banks, including Goldman Sachs, ICAP, JPMorgan, and UBS. As interest in ETPs grows, so does the variety of ETPs available.

The Fidelity Physical Bitcoin ETP was listed on the Deutsche Börse in Frankfurt and the SIX Swiss Exchange in Zurich last month by asset management Fidelity International. In Europe, investment firms and institutional clients have access to this product.

According to Deborah Fuhr, managing partner and founder of ETFGI, which studies the ETF business, there are now 73 crypto ETPs in Europe, with $7 billion in assets, or 57 percent of the worldwide crypto ETP industry, as of Feb. 25.

According to ETFGI, there are 17 crypto exchange-traded funds (ETFs) or ETPs available in Canada, three in the United States, and seven in Latin America.


Why is Europe the first to list cryptocurrency exchange-traded funds (ETFs)?

“We’re seeing a growth in the number of issuers launching crypto ETPs in Europe as more investors perform their due diligence on crypto and some are beginning to include some bitcoin and other crypto exposures to their portfolios,” Fuhr said.

At the end of January, assets worth $12.4 billion were invested in 100 crypto ETFs or ETPs listed internationally, according to ETFGI.

According to Fuhr, XBT Provider is the top ETP provider in terms of assets, with $3.1 billion, or a 25% market share. With $1.7 billion and a 14% market share, 21Shares is in second place.

According to Laurent Kssis, a crypto ETF expert and director of CEC Capital, the crypto ETP market skyrocketed in 2020, more than quadrupling to a then-record $3.1 billion.

According to Kssis, much of the interest has been fueled by the success of bitcoin (BTC), which has been fueled by a continual public adoption of cryptocurrencies by significant organisations like Ruffer, a U.K. investment manager.

“However, it’s evident that institutional interest hasn’t done for bitcoin what it was expected to achieve,” Kssis added, referring to the cryptocurrency’s status as a digital safe haven superior to gold.


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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