Swiss-based crypto investment boutique FiCAS has launched a new actively managed ETP, offering professional investors diversified exposure to a selection of the most prominent digital assets.
The ETP provides broad, physically backed exposure to a basket of leading crypto assets.
The FiCAS Dynamic Crypto ETP (BTCD SW) has been listed on SIX Swiss Exchange in US dollars, euros, and Swiss francs.
The ETP’s primary investment objective revolves around achieving long-term capital appreciation and outperforming the CCi30 Index, a reference for the market cap-weighted performance of the 30 largest cryptocurrencies, excluding stablecoins.
To realize this objective, FiCAS builds a long-only portfolio, eschewing leverage, of leading crypto assets. Portfolio constituents are selected and weighted based upon multiple factors including crypto industry outlooks, on-chain and technical analysis, comprehensive financial examination, quantitative assessments, and deep dives into protocol economics or ‘Tokenomics’. This holistic strategy is refined by FiCAS’s extensive research, algorithmic insights, and the adoption of AI tools.
FiCAS champions a direct ‘physical’ approach. Every ETP share is fully backed by a proportional stake in the underlying digital assets. These digital tokens are safeguarded using state-of-the-art cold-storage solutions, facilitated by industry stalwarts like Coinbase, Kraken, and Crypto Broker.
The ETP may also pursue passive income through the staking of certain tokens. Staking is a way of earning rewards for holding certain cryptocurrencies that work on a proof-of-stake consensus mechanism. Proof-of-stake mechanisms put their underlying cryptocurrency to work in verifying and securing transactions on the blockchain. Investors who choose to take part in this process ‘stake’ their cryptocurrency holdings and earn rewards for doing so.
Staked coins do not move from the secure custodians where they are stored, and the ETP remains 100% physically backed at all times.
Cost-wise, the ETP charges a 2.00% management fee as well as a performance fee, set at 20%, on returns that surpass a high-water mark which has been initially pegged to the ETP’s issue price.
FiCAS made history by introducing the world’s inaugural actively managed crypto ETP on SIX Swiss Exchange in July 2020. Named the Bitcoin Capital Active ETP (BTCA SW), its goal is to achieve long-term capital growth by trading within the top 15 cryptocurrencies based on market capitalization. Moreover, it possesses the agility to transition into fiat currencies like USD, EUR, or CHF when deemed prudent.