ETC Group Unveils BTC1: Revolutionizing Bitcoin Investment with the First Global Spot ETP

Deutsche Börse XETRA has listed a new ETP, BTC1, on Bitcoin (BTC) with a focus on benchmark-conscious and long-term investors. BTC1 provides cost efficiency (TER of 0.30%), liquidity extension with a Tri-NAV methodology, and reference rate accuracy using CF Benchmarks. Designed by ETC Group, the ETP is the first global spot ETP on Bitcoin, with primary listing on XETRA and availability on other platforms.

ETC Group Revolutionizes Bitcoin Investment with BTC1, the First Global Spot ETP

London, United Kingdom - 27th July 2023 - ETC Group, the leading provider of institutional digital asset investment products, has announced the launch of BTC1, a groundbreaking Exchange-Traded Product (ETP) that offers unprecedented exposure to Bitcoin (BTC) for long-term investors. Listed on Deutsche Börse XETRA, BTC1 delivers a suite of innovative features designed to meet the sophisticated needs of institutional clients.

A Tailored Solution for Long-Term Investors

BTC1 is meticulously crafted to cater to the unique requirements of buy-and-hold investors and global institutional clients. Its competitive Total Expense Ratio (TER) of 0.30% provides cost efficiency in the European market, while its meticulous tracking of the institutional-grade Bitcoin price benchmark ensures accuracy and reliability in tracking market movements.

Unparalleled Liquidity: Tri-NAV Methodology

ETC Group's BTC1 boasts a unique Tri-NAV methodology that extends primary market liquidity to institutional investors, covering BTC spot liquidity across different markets. This groundbreaking approach enables price determinations three times throughout the day, significantly expanding liquidity beyond traditional stock exchange hours. As a result, institutional investors can trade their holdings for extended periods, exceeding any other regulated vehicle in the global primary market for Bitcoin spot.

Global Spot Exposure: A First-of-Its-Kind

According to ETC Group, BTC1 is the first global spot ETP on Bitcoin, providing a comprehensive solution for investors seeking exposure to the asset class. Its extended liquidity and risk management features cater to the specific challenges of Bitcoin's fragmented liquidity, ensuring that investors can access the market with confidence.

Wide Accessibility and Institutional Acceptance

BTC1 will be available for trading on XETRA and numerous other platforms, adding to HANetf's pan-European ETP distribution platform. This broad accessibility will empower institutional clients with flexible access to Bitcoin investment.

ETC Group: A Pioneer in Digital Asset Investment

ETC Group has established itself as a leader in the digital asset investment sector, offering a range of ETPs on Bitcoin, Ethereum, and other prominent cryptocurrencies. The company's expertise in bridging the traditional financial market with the burgeoning crypto market has earned it widespread recognition.

Industry Leaders Applaud BTC1

"At ETC Group, we are committed to driving the advancement of cryptocurrency investment," said Tim Bevan, CEO of ETC Group. "The launch of BTC1 represents a groundbreaking proposition that introduces the first globally oriented Bitcoin ETP to the market, with extended liquidity and risk management features that our clients demand. We are proud to lead the industry once again and believe that BTC1 has the potential to transform the landscape for institutional investors."

Chanchal Samadder, Product Manager at ETC Group, added, "BTC1 is a significant milestone in the evolution of Bitcoin investment products. Designed with benchmark-conscious and long-term investors in mind, BTC1 offers a unique blend of cost efficiency, accuracy, and extended primary market liquidity, setting a new standard in the Bitcoin ETP market."

"BTC1 epitomizes the innovation that ETC Group is known for," said Julian Sawyer, CEO of Zodia Custody, a leading European provider of institutional-grade cold wallet custody. "This ETP meets the critical demand for secure and compliant digital asset custody, empowering institutions to confidently embrace the future of digital assets."

Deutsche Börse XETRA: A Global Trading Hub

Deutsche Börse, the operator of the Frankfurt Stock Exchange, provides a robust platform for the trading of ETC Group's BTC1 ETP. XETRA, Deutsche Börse's flagship trading platform, boasts a significant share of the German stock market and is recognized as one of the largest stock exchanges worldwide.

Benchmark and Liquidity: A Cornerstone of Stability

ETC Group has meticulously addressed the challenges of Bitcoin's fragmented liquidity through the development of a robust benchmark that aggregates liquidity from various exchanges. This approach ensures accurate and reliable price determination for investors. BTC1 leverages the institutional reference rate of the Bitcoin CF from CME (BRR) as its benchmark, ensuring the highest standards of market representation.

Extended Liquidity: A Competitive Advantage

BTC1's Tri-NAV methodology expands liquidity beyond the limitations of traditional ETFs and ETPs. By providing three liquidity pools over a 14-hour period, investors gain access to a significantly extended window for trading. This unparalleled liquidity enhances market depth, reduces volatility, and empowers investors with greater flexibility in managing their positions.

Conclusion

BTC1, the latest innovation from ETC Group, has set a new benchmark in institutional Bitcoin investment. Its comprehensive suite of features, including competitive pricing, benchmark-driven accuracy, and extended liquidity, meets the evolving needs of long-term investors and global institutions. As the digital asset market continues to mature, BTC1 is poised to play a pivotal role in the institutional adoption of Bitcoin, further solidifying ETC Group's position as a thought leader and innovator in the digital asset ecosystem.