Invesco to launch Bitcoin ETP as institutional adoption grows

Rick Steves

Many major investors are looking to enter into Bitcoin via the ETP method as they believe that it is the easy and more regulated way to enter into the BTC market.

Invesco has announced it is launching a Bitcoin ETP, 100% backed by holdings in the underlying digital assets with the aim of delivering the price performance of Bitcoin, less a fixed 0.99% annual fee.

This is yet another move made by institutional market participants as part of the adoption of Bitcoin et al. Invesco is an independent investment management with $1,593.7 billion in assets on behalf of clients worldwide.

Invesco partners with CoinShares, Zodia, Northern Trust

The Invesco Physical Bitcoin ETP will be sponsored by CoinShares. The leading European digital asset investment firm will also serve as the execution agent for the Physical Bitcoin ETP.

As to custody, Bitcoins will be held on behalf of the Invesco ETP by Zodia Custody, a UK-based digital asset custodian, who are registered with the FCA as a Crypto Asset Business under UK Anti-Money Laundering Regulations.

Northern Trust, which will act as the administrator for the Invesco ETP, is a co-investor in Zodia Custody alongside SC Ventures, the innovation arm of Standard Chartered.

Bitcoin ETPs are hot

Bitcoin accounts for 42% of the US$2 trillion cryptocurrency market and is the most liquid asset within the space, with more than $2 billion worth of Bitcoins traded on digital exchanges around the world each day.

As the world wakes up to crypto, Bitcoin is usually a favorite for both retail and institutional investors. This explains the rise of Bitcoin ETPs all over the world.

In the UK, the first Bitcoin ETP was launched by the ETC Group and listed on the Aquis Exchange. The BTCE Bitcoin product was the to be available in the UK or any part of Europe and the trading is in GBP, EUR, CHF, and USD as well with the focus purely on the European traders.

Many major investors are looking to enter into Bitcoin via the ETP method as they believe that it is the easy and more regulated way to enter into the BTC market.

This also shows that the regulators are now looking into ETPs more seriously and more such products are likely to get approved in the future.

The BTCE product has already been a big hit among investors when it was listed at the XETRA platform of Deutsche Bourse and Swiss SIX exchange and it has been the top bitcoin ETP performer in 2021 which not only shows the continued institutional interest in bitcoin but also shows the potential that is there for other related crypto ETP products.

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