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Wisdomtree's Physically Backed Bitcoin ETP Goes Live on SIX Stock Exchange

New York-based ETF provider Wisdomtree has launched a physically backed bitcoin exchange-traded product (ETP) on Switzerland’s SIX stock exchange. According to Wisdomtree, the new product is not cash-settled like most ETPs traded on the SIX exchange as the BTCW investment product will be settled in BTC.

Also read: 7 Crypto Exchange-Traded Products Now Live on Swiss Bourse

Wisdomtree Launches Physically Backed Bitcoin ETP on Switzerland’s Principal Stock Exchange

On December 3, the American firm Wisdomtree Investments (NASDAQ: WETF) announced the launch of a new BTC-based exchange-traded product (ETP) that will be traded on Switzerland’s SIX stock exchange. The new product will be different from the other cryptocurrency ETPs traded on SIX, because the BTCW product will be physically backed by bitcoins held in storage. The ticker BTCW will compete with seven other cryptocurrency ETPs traded on SIX that essentially track a basket of digital assets or track the prices of single cryptocurrencies.

Wisdomtree's Physically Backed Bitcoin ETP Goes Live on SIX Stock Exchange

The Switzerland-based firm Amun AG is behind most of the crypto ETPs on SIX, which include cash-settled ETPs for a basket of coins, BTC, ETH, XRP, and BCH. The ETF provider Wisdomtree is the seventh largest ETF firm in the U.S. and has been offering exchange-traded products for nearly two decades. Wisdomtree’s latest announcement says investors will get exposure to BTC. The company also highlighted that with BTCW, investors will get “access to institutional-grade storage solutions without needing to set it up with a custodian themselves.”

“We have been monitoring cryptocurrencies for some time and are excited to bring investors secure access to this developing asset class,” Wisdomtree’s Head of European-based Products, Alexis Marinof, said. “Wisdomtree has a history of bringing innovative investment themes to a broad market through institutional-class products, allowing investors to take exposures in difficult-to-access asset classes — we see many parallels between the cryptocurrency space and commodities in this regard.”

Marinof added:

The introduction of cryptocurrencies in an ETP structure will enable investors to find new ways to introduce digital assets into portfolios while still relying on the safety and security that they have come to expect from Wisdomtree.

Wisdomtree's Physically Backed Bitcoin ETP Goes Live on SIX Stock Exchange
Wisdomtree has published a lot of documentation in regard to crypto investment strategies and cryptocurrencies becoming a “new asset class.”

‘Bringing Cryptocurrencies to the ETP Structure’

This is not Wisdomtree’s first experience dealing with physically-backed ETPs as the company launched the world’s first physically backed gold ETP in 2003. Moreover, the company has the largest ETF in terms of AUM in Europe as well because it utilizes European equities, but removes the volatility tethered to the exchange rates between the USD and EUR. The BTCW settlement will be handled by the International Central Securities Depository (ICSD) and Wisdomtree aims to “offer liquidity like any other exchange-listed security.” Wisdomtree notes that bringing digital currencies to the ETP structure may bring the possibility of liquidity centralization, which in turn could “benefit the underlying digital asset.”

“Cryptocurrencies are potentially the next asset class to benefit from increased interest when they become accessible in an ETP structure,” Wisdomtree’s capital markets and technology product development executive Rafi Aviav explained during the announcement. “We have developed a solution which addresses the difficulties investors face in accessing digital assets and are bridging the gap between the underlying decentralised online blockchain technology and traditional investment structures.”

Wisdomtree's Physically Backed Bitcoin ETP Goes Live on SIX Stock Exchange
Wisdomtree’s educational resources for investors.

Aviav believes that the ETP system could invoke “new dimensions” into crypto markets, which include bolstering institutional-grade custody solutions. The Wisdomtree executive thinks that incorporating digital currency trading into standard brokerage accounts will make markets “more liquid and transparent.” At press time, Wisdomtree’s BTCW product is live on Switzerland’s principal stock exchange, but the investment vehicle is only available to institutional investors. Wisdomtree has also recently published various educational resources for institutional and retail investors on how to invest in digital currencies and the “rise of cryptocurrencies as a new asset class.”

What do you think about the new Wisdomtree physically backed bitcoin ETP that’s trading on the Switzerland exchange SIX? Let us know what you think about the relationship between cryptocurrencies and ETPs in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, SIX Exchange, and various Wisdomtree online documents.

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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for about the disruptive protocols emerging today.

Jamie Redman , 2019-12-03 20:45:26 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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