Tag: Etp

Largest Weekly Inflows in Digital Assets in Over a Year, Led by Bitcoin

by Blockchain News

In a significant shift of sentiment, digital asset investment products experienced their largest single weekly inflows since July 2022, totaling a substantial $199 million, according to CoinShares report. This surge effectively corrected almost half of the prior nine consecutive weeks of outflows, signaling renewed investor confidence in the market.

Bitcoin emerged as the primary beneficiary, capturing a staggering $187 million in inflows last week, which accounted for an impressive 94% of the total funds. This surge in Bitcoin investment comes amidst one of the largest price surges in recent times, as the cryptocurrency experienced a remarkable 20% increase over the course of the week.

Conversely, short-bitcoin products continued to face outflows for the ninth consecutive week, with a total of $4.9 million withdrawn.

However, this positive sentiment did not extend to altcoins, as they only witnessed minor inflows. Ethereum, the second-largest cryptocurrency by market capitalization, attracted $7.8 million in inflows. Although this figure represented a mere 0.1% of assets under management (AuM) compared to Bitcoin’s 0.7% inflows, it indicated a relatively lower appetite for Ethereum in the current market.

The positive market shift was primarily attributed to recent announcements made by high-profile exchange-traded product (ETP) issuers. These issuers have filed applications for physically backed exchange-traded funds (ETFs) with the US Securities and Exchange Commission, generating renewed optimism among investors.

The total assets under management (AuM) for digital asset investment products now stand at an impressive $37 billion, reaching their highest point since before the collapse of 3 Arrows Capital.

While Bitcoin experienced significant inflows, outflows persisted for short-bitcoin products. Over the course of the past nine weeks, outflows accounted for 60% of the total AuM, further highlighting the divergence in investor sentiment.

Other altcoins, including XRP and Solana, saw only marginal inflows of $0.24 million and $0.17 million, respectively. However, the improved market sentiment did encourage some investors to explore multi-asset investment ETPs, resulting in $8 million in inflows during the previous week.

Overall, the surge in inflows into digital asset investment products, particularly Bitcoin, suggests a growing confidence among investors, possibly driven by the anticipation of new physically backed ETFs in the US market. While altcoins have yet to witness a substantial boost, the market remains dynamic, and investor preferences may shift as new opportunities emerge.

Source

Tagged : / / / / / / / / / /

On BX Swiss market, 21Shares launches crypto staking ETP

by Blockchain News

A cryptocurrency company by the name of 21Shares, which has its headquarters in Switzerland, is placing its bets on proof-of-stake (PoS) coins by launching a new cryptocurrency exchange-traded product (ETP) that is solely focused on staking. This decision was made in order to increase the company’s chances of success.

The business introduced a brand new exchange-traded product (ETP) on January 18th, which was given the name 21Shares Staking Basket Index ETP. It is a crypto staking index that is intended to monitor up to ten distinct Proof-of-Stake currencies simultaneously.

As a consequence of the merger with STAKE, 21Shares and its parent company, 21.co, now provide a combined total of 47 crypto exchange-traded product offerings (ETPs) to investors in 12 different markets and 9 different countries.

Despite this, the performance of the ETPs has been strong during the first few weeks of 2023, with the performance of AXTZ gaining 38% year-to-date and the performance of ASOL climbing 78% year-to-date respectively.

Krause highlighted that assets such as Solana, which is extensively related to the previous FTX exchange, have not had any influence on the goods that 21Shares has to offer and that this is something that he has been emphasizing throughout the conversation. He said that this is something that he has been highlighting throughout the conversation. As an example of what he meant, he said that “Solana, like practically all other crypto assets, had severe price drops in 2022 but did not suffer any fundamental damage that would bar its inclusion in the index.” This was said in order to demonstrate his argument. In particular, he was alluding to the assertion that “Solana did not suffer any fundamental degradation that would bar its inclusion in the index.”

The launch of STAKE on the market comes after a number of notable authorities from all around the world voiced their worries over the staking of cryptocurrencies.

Source

Tagged : / / / /

Franklin Templeton Floats Metaverse ETF for EU Investors

by Blockchain News

American multinational holding company and global investment firm Franklin Templeton has launched a metaverse-focused Exchange-Traded Product (ETP).

ETF2.jpg

The ETP dubbed the Franklin Metaverse UCITS ETF will track the Solactive Global Metaverse Innovation Index GTR as it will seek to offer investors exposure to the burgeoning metaverse world.

Through the UCITS ETF, European investors will be able to gain exposure to companies with a vested interest in the metaverse world, or those planning to be involved. The new investment product is on track to be listed on the Deutsche Börse Xetra (XETRA) on September 7, and the Borsa Italiana and London Stock Exchange (LSE) on September 9, respectively.

 

The new fund will be headed and managed by the duo of Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.

 

“Society has already experienced three foundational changes in the way that technology operates and how it’s been delivered since the early 1970s. This exciting fourth wave is now emerging, enabled by blockchain technology,” Dina Ting said in a statement.

 

“Many big tech companies have already pivoted towards the metaverse for their next major area of development in the same way that many did at the inception of the internet. There appear to be tremendous real-world business opportunities for investment in this space considering that by 2030, the e-commerce market could grow between USD2.0–USD2.6 trillion.”

 

The Franklin Templeton metaverse ETP did not draft in companies that do not align themselves with the UN Global Compact Principles.

 

The company comes off as one of the major investment powerhouses that have offered investors an avenue to gain exposure to the metaverse world. Besides Franklin Templeton, ProShares, Fidelity Investments, Global X, ETC Europe, and Invesco are amongst the firms that have floated their own metaverse-linked ETPs in the past year.

Image source: Shutterstock

Source

Tagged : / / /

WisdomTree Adds Polygon and Avalanche to Crypto-Basket ETPs

by Blockchain News

WisdomTree Investments, Inc., a New York-based exchange-traded fund and exchange-traded product provider and asset manager, announced on Monday that it has added Polygon (MATIC) and Avalanche (AVAX) to indices at two physically backed crypto basket exchange-traded products (ETPs), the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

The firm added Polygon and Avalanche to the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

BLOC and WALT are already trading on the German stock exchange Börse Xetra, the France stock exchange known as ‘the Euronext Paris,’ Amsterdam stock exchange and the Swiss stock exchange SIX.

The two crypto ETPs have a sales pass for the whole European Union.

Alexis Marinof, head of Europe at WisdomTree, talked about the development: “Our crypto baskets are designed to give investors exposure to the changing environment of crypto assets. Additional coins such as MATIC and AVAX can be added to the indexes through quarterly resets. Before being included in our indexes, coins are evaluated by a committee, and they must meet several criteria, including sufficient liquidity levels, practical use cases, and significant mass.”

Marinof further elaborated: “Our monitoring and rebalancing allow investors to conveniently allocate some of our largest and most liquid investable crypto assets within a familiar structure without having to open or insure individual portfolios or any individual currency to stake.”

The BLOC is a free-float market capitalization-weighted ETP that offers exposure to a diversified basket of cryptocurrencies representing about 65% ​​of the crypto market capitalization. The product is designed for investors who want broad exposure to the liquid and established assets of the crypto market. With the new additions, the basic BLOC index is now constituted of Bitcoin, Ethereum, Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche.

On the other hand, the WALT is a market capitalization-weighted free-float ETP that enables exposure to a diversified basket of altcoins. The ETP offers exposure to major crypto assets, excluding Bitcoin and Ethereum. It was designed for investors who already have exposure to these major cryptocurrencies and want to diversify their exposure without modifying their current holdings. With the new additions, the basic WALT index now consists of Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche.

WisdomTree said it added MATIC and AVAX to BLOC and WALT on August 19 after rebalancing the indices of the two crypto-basket ETPs.

Crypto ETPs Blossoming in Europe

The crypto ETP market in Europe is becoming more competitive than in North American and Latin America. Firms are issuing more varieties of crypto ETPs because of increasing demand.

In February, Fidelity International listed the Fidelity Physical Bitcoin ETP on Germany’s Deutsche Börse stock exchange and Switzerland’s SIX Swiss Exchange. The product is available to institutional clients and investment firms in Europe.

In March, WisdomTree launched three new crypto ETPs backed by Solana, Cardano, and Polkadot in Europe.

In 2019, WisdomTree launched its first crypto-asset ETP and has continued to build some diversified crypto baskets since then. WisdomTree has $200 million in assets under management in its crypto asset ETPs.

Image source: Shutterstock

Source

Tagged : / / / /

DeFi Technologies Inc’s Subsidiary Valour Owns over $274m in AUM

by Blockchain News

DeFi Technologies Inc announced Wednesday that its subsidiary Valour owns over $274 million in assets under management(AUM).

Stack of cryptocurrencies like Litecoin on Ipad with computer background

Valour had $274,229,000 in assets under management as of March 29. Valour issues digital asset exchange-traded products (“ETPs”) in Europe.

Valour’s net sales increased 205% sequentially, from $106.3 million in May 2021 to more than $324.5 million so far in March 2022. And launched two new products: Valor Avalanche (AVAX) ETP and Valor Terra (LUNA) ETP.

DeFi Technologies said Valour’s AUM would grow further in the future thanks to the joint ETP joint venture with SEBA Bank AG,

CEO Russell Starr said:

“Since listing our first product, Bitcoin Zero, on the Nordic Growth Market just over a year ago, we have seen an incredible reception to our ETP offerings. We are still in a very early growth stage. And our team has done a tremendous job of planting seeds for future growth by launching eight ETPs across several exchanges in Europe that enable individuals and institutions to invest in digital assets simply and securely.”

With more product launches, new exchange listings, a digital asset-backed program, and our joint ETP venture with SEBA Bank AG., the company said excitedly for the company’s growth trajectory in 2022 and the years to come.

The total value of ETPs currently under management by the company is as follows:

  • BTC Zero: $95,232,000 

  • ETH Zero: $67,371,000

  • ADA Valour: $43,408,000

  • DOT Valour: $24,409,000

  • SOL Valour: $38,498,000

  • UNI Valour: $1,450,000

  • LUNA Valour: $2,605,000

  • AVAX Valour: $1,256,000

Image source: Shutterstock

Source

Tagged : / / / / /

What BTC price slump? Bitcoin outperforms stocks and gold for 3rd year in a row

by Cointelegraph

Bitcoin (BTC) may be down over 30% from its record high of $69,000, but it has emerged as one of the best-performing financial assets in 2021. BTC has bested the U.S. benchmark index, the S&P 500, and the gold.

Arcane Research noted in its new report that Bitcoin’s year-to-date (YTD) performance came out to be nearly 73%. In comparison, the S&P 500 index surged 28%, and gold dropped by 7% in the same period, which marks the third year that Bitcoin has outperformed.

Bitcoin vs. S&P 500 vs. Gold in 2021. Source: Arcane Research, TradingView

At the core of Bitcoin’s extremely bullish performance was higher inflation. The U.S. consumer price index (CPI) logged its largest 12-month increase in four decades this November.

“Most economists didn’t see the high inflation coming, as witnessed by the 1-year ahead consumer inflation expectations,” the Arcane report read, adding:

With its 73% gain in the highly inflationary 2021, Bitcoin has proven itself to be an excellent inflation hedge.

Inflation 2021: Actual CPI vs. Expected CPI. Source: BLS, New York Fed

Bitcoin holdings grew among institutional investment vehicles

Loose monetary policies and a sustained fear of higher inflation also prompted mainstream financial houses to launch crypto-enabled investment vehicles for their rich clients in 2021.

Arcane reported an inflow of 140,000 BTC (~$6.56 billion) across spot- and future-based Bitcoin exchange-traded funds (ETF) and physically-backed exchange-traded products (ETP) this year.

Bitcoin exchange-traded fund holdings. Source: ByteTree, Arcane Research

That prompted more Bitcoin units to get absorbed into investment vehicles, underscoring a greater institutional demand for the cryptocurrency.

In contrast, gold-backed ETFs witnessed an outflow of $8.8 billion in 2021, according to World Gold Council’s report published this December.

Global gold-backed ETF flows. Source: World Gold Council

Volatility behind superior performance?

Nonetheless, Bitcoin’s relatively superior performance in 2021 has included periods of high volatility.

Many analysts believe that extreme price fluctuations keep Bitcoin from becoming an ideal inflation hedge. That includes Leonard Kostovetsky, a finance professor at Boston College, who recalled in his blog post that there had been 13 days in 2021 on which the BTC price has moved over 10% in one direction. Excerpts:

“It seems strange to think that a person who is worried about holding dollars because they lost 7% of their value over the last year would be comfortable holding Bitcoin which could (and often does) lose that much value in a single day.”

Arcane too recognized Bitcoin for being more volatile than the S&P 500 in 2021, noting that the cryptocurrency “behaved like a risk-on asset” by merely amplifying the most significant stock market movements.

The researcher cited VIX — a measure of the expectation of volatility based on S&P 500 index options — to exemplify the relationship between Bitcoin and stock markets. It noted that the BTC price fell hard whenever the VIX readings spiked in recent times, underscoring that institutional traders viewed Bitcoin as a risk-on asset.

Bitcoin vs. VIX. Source: Arcane Research, TradingView

As a result, Bitcoin’s potential to fall harder in the wake of a stock market correction also became higher. Arcane too noted that a bearish 2022 for the S&P 500 may end up wiping a big portion of Bitcoin’s gains.

“Therefore, be aware of stock market headwinds in the next year and their possible implications for bitcoin’s short-term price trajectory,” it added.

Related: Arcane Research releases its crypto predictions for 2022

But hedge fund manager Chris Brown went far in predicting an all-and-all Bitcoin doom in 2022. The Aristides Capital’s managing member stated that cryptocurrencies could face massive selloffs ahead as the U.S. Federal Reserve ends its $120 billion a month asset purchasing program followed by three rate hikes next year.

BTC/USD weekly price chart versus Federal Reserve balance sheet. Source: TradingView 

“If the Fed really does hike rates enough to make money considerably less loose, or if markets believe they will, you are going to see certain areas of speculation come to a screeching halt,” Brown said, adding:

The prime example of such asset speculation is cryptocurrency; here lies $2.64 trillion of ‘wealth’ that is backed by nothing and generates no cash flows.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.