European bitcoin ETP heads to London for institutional investors

Another cryptocurrency exchange traded product is to launch for institutional investors in the UK this summer, as bitcoin continues to attract attention.

Swiss issuer 21Shares will launch its 21Shares Bitcoin ETP on Aquis Exchange in London and Paris later this summer and in partnership with market-maker GHCO, the firms said on 7 June.

One share of the product, which is already available in Germany, Switzerland, Austria, France and the Netherlands, will provide exposure equal to roughly 0.00035 of bitcoin.

It comes as the UK’s first bitcoin ETP goes live in London markets on 7 June, after it was announced by Aquis and issuer ETC Group earlier this month.

READFirst bitcoin ETP launches on UK exchange

Institutional demand for cryptocurrencies has soared so far this year, with data collected by Standard Chartered showing the total volume of trading on major exchanges averaging more than $4bn per day this month.

Banks have been eager not to miss out on the craze, with StanChart announcing plans to launch its own crypto trading exchange for professionals in the UK and Europe on 2 June.

Goldman Sachs, Morgan Stanley and JPMorgan are also all said to be planning their own forays into cryptocurrency ETPs for clients.

READBitcoin, banks and blockchain: Here’s what Goldman Sachs, JPMorgan and others are planning

21Shares and Aquis said they plan to make more cryptocurrency-exposed ETPs available for investors, including for tokens such as ether, ripple, polkadot and cardano.

“This is the right time to bring our successful crypto ETP to the institutional UK market,” said Hany Rashwan, chief executive of 21Shares.

Cryptocurrency prices were relatively flat as of 8am BST on 7 June, with bitcoin up 0.6% in the last 24 hours to $36,122.

To contact the author of this story with feedback or news, email Emily Nicolle