ETC Group has surpassed $2 billion in assets under management courtesy of investor net inflows and strong market performance related to the firm’s bitcoin and ethereum exchange-traded products.
The price of bitcoin and ethereum have surged recently amid a wider rally in the crypto asset market.
The specialist crypto ETP provider currently offers four products providing directly backed exposure to bitcoin, ethereum, litecoin, and bitcoin cash.
The ETPs maintain listings on Xetra, SIX Swiss Exchange, Euronext Paris and Euronext Amsterdam.
The BTCetc – ETC Group Physical Bitcoin (BTCE) and ETHetc – ETC Group Physical Ethereum (ZETH) are by far the firm’s largest ETPs, currently housing over $1.6bn and $350 million in assets respectively.
Bradley Duke, CEO of ETC Group, commented: “The pace with which we’ve hit $2 billion AUM, with our leading bitcoin ETP now over $1.6 billion AUM, indicates increased awareness amongst investors of crypto ETPs, as well as a clear preference for high quality, physically-backed and regulated securities that faithfully track the underlying crypto.
“Our continuing success and leadership in the crypto market is testament to not only our team’s considerable efforts and focus on quality and innovation, providing securities that are attractive to investors, but also our partnerships with leading service providers.”
ETC Group’s key partners include HANetf, XTX Markets, Flow Traders, DRW, Jane Street, BitGo, Bank Frick and Baader.
Amid a wider rally in the crypto-asset market, bitcoin and ethereum, the two largest cryptocurrencies globally by total market capitalization, have enjoyed notable success.
Bitcoin’s recent performance has been driven by the introduction of the first US-listed futures-based bitcoin ETF, the approval of spot bitcoin ETFs in Australia, and the anticipated rollout of a major upgrade that will enhance bitcoin’s privacy and efficiency and, crucially, unlock the potential for smart contracts.
Bitcoin may also be trending higher due to its perceived inflation-hedging properties as concerns over rising prices come to the fore.
Between 1 October and 9 November, the USD price of bitcoin climbed 39.1% with a single bitcoin trading at an all-time high of approximately $68,000. In the same period, BTCE has scooped up approximately $330m in net inflows.
Ethereum is faring even better with the price of one ether surging 43.3% since the beginning of October to trade at a new all-time high of around $4,800.
Ethereum recently implemented a major upgrade in late October. While the upgrade itself is, perhaps, something of a non-event, it has laid the groundwork for ethereum 2.0, a major network overhaul that will enhance security, scalability, and sustainability, helping to assure ethereum’s position as the leading venue for the delivery of smart contracts.