The total assets under management across all crypto exchange-traded products (ETPs) worldwide have risen in the past month to more than $50 billion. As Bitcoin’s price is headed towards new heights, crypto ETPs have been topping the list with an increase in assets under management. Their performance has been stable and solid by market price over the last 30 days.
Most recently, institutional investors have been dominating the crypto space with hedge funds coming on top as the biggest contributors. Exchange-traded products linked to cryptos have seen their share prices grow in recent months, driven by Bitcoin’s price hike as well as investor interest.
To date, there have been several attempts to integrate cryptocurrencies into traditional investment vehicles with varying levels of success. For the most part, investors have had to enter a new, crypto-native environment in order to gain exposure to a given cryptocurrency. This could involve sending funds to unregulated entities to facilitate the purchase, which is a risk many managers are understandably unwilling to take.
The specifics of managing a portfolio in such a new and highly volatile market require a deep understanding of blockchain technology and the mechanisms that drive cryptocurrency growth. Navigating market volatility, regulatory hurdles, security requirements for storing crypto, and transferring client funds are all part of handling these types of investment products to minimize risks.
As such, FiCAS is introducing a Crypto ETP leveraging on the benefits of cryptocurrency adoption and the introduction of regulated investment products that are listed on Stock exchanges. Our 15 FiCAS Active Crypto ETP offers a broad range of securities-based products that are priced according to underlying digital assets. Similarly to stock, the ETP is attached to a commodity. For this particular product, the commodity is cryptocurrency.