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Invesco received a listing of spot Bitcoin ETP on Deutsche Boerse

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One of the largest American investment companies, Invesco, announced the addition of Xetra from the Deutsche Boerse structure to the listing of a spot Bitcoin (BTC) exchange-traded product (ETP). ETF Stream writes about this.

Thus, the tool received the BTIC ticker. Furthermore, the Financial Conduct Authority (FCA) regulated Zodia Custody from Standard Chartered will provide custodial services.

Moreover, the ETP will repeat the dynamics of the CoinShares Bitcoin Hourly Reference Rate index minus commissions. Therefore, the Total Expense Ratio (TER) will be 0.99%. Aimed for institutional investors, BTIC provides packaged exposure to Bitcoin; which makes up 42% of the $2 trillion digital asset market.

The choice of a spot rather than a futures basis for BTIC

“In the last two to three years, we have been trying to structure the product so that looked, from an institutional point of view, as close as possible to a traditional ETF”. Said Gary Buxton, head of Europe, Middle East, Africa (EMEA) ETFs and indexed strategies at Invesco.

Buxton also added that they are focusing on storage, segregation of accounts and valuation. “One of the strengths of an ETP is its access facility,” he explained.

In addition, the head of EMEA ETFs explained the choice of a spot rather than a futures basis for BTIC; with a more “comfortable” assessment over time. As well as a more “observable” of the market in terms of liquidity.

Protecting investors from liquidity depletion

The publication recalled that earlier State Street Global Advisors did not rule out the creation of a similar product.

Recall that previously in November, Invesco revealed reasons for dropping Bitcoin futures exchange-traded fund (ETF). “We thought that Chicago Mercantile Exchange (CME) futures were going to be a very effective element of the portfolio. We never thought they would be effective when they would be 100%”. Explained Anna Paglia, head of ETF and index strategies at Invesco.

The company believes that the basket should include the cryptocurrency itself, futures, swaps and private funds to protect investors from liquidity depletion.

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