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While the U.S. Securities and Exchange Commission (SEC) approved eleven spot Bitcoin exchange-traded funds, triggering FOMO among investors, European crypto products enthusiasts remain on the sidelines. Notably, Europe already boasts a range of crypto products, including exchange-traded products (ETPs) tailored for retail investors.
Europe’s progressive stance on crypto products is evident, with the existence of spot Bitcoin ETPs providing investors with exposure to the crypto market for an extended period. The region’s crypto product landscape dates back to May 2015 when Sweden’s XBT Provider AB received authorization for Bitcoin Tracker One, marking the introduction of the first Bitcoin-based security on a regulated exchange. Subsequently, in October 2015, the company launched the Euro-denominated Bitcoin-based security, Bitcoin Tracker EUR, available through Nasdaq Nordic.
Crypto Products European Crypto ETP Landscape Thrives Amid Regulatory Constraints
Prominent European ETP players, including 21Shares, CoinShares, WisdomTree, VanEck, Valour, Invesco, Hashdex, ETC Group, have actively contributed to the crypto product market in the region. However, the prospect of a Bitcoin ETF listing in Europe faces challenges due to regulatory hurdles.
Laurent Kssis, director at financial services firm CEC Capital, emphasizes that under UCITS laws in Europe, a Bitcoin ETF would be unlikely to exist. The definition of an ETF within UCITS laws aligns with a basket of stocks, emphasizing diversification where no single component holds more than a 20% allocation. This regulatory framework presents limitations for the establishment of a Bitcoin ETF in Europe.
Strong Debut for US Spot Bitcoin ETFs with Over $4 Billion in Trading Volumes
On the inaugural day of trading, US spot Bitcoin ETFs collectively amassed over $4 billion in volumes. BlackRock’s product accounted for a quarter of the total, while the Grayscale Bitcoin Trust (GBTC), post-conversion to an ETF, contributed almost half. Bloomberg Intelligence analyst Eric Balchunas shared insights, noting 700,000 individual trades across the 11 spot ETFs on the first day. Crypto Products, Balchunas emphasized robust grassroots action, surpassing expectations and reflecting substantial retail investor participation alongside institutional involvement.
Crypto Products- Global Crypto ETFs and ETPs Surge 119.6% in 2023
Crypto Exchange-Traded Funds (ETFs) and Exchange-Traded Products (ETPs) listed globally experienced a remarkable 119.6% increase in the first 11 months of 2023, as reported by ETFGI, an independent research and consultancy specializing in ETF trends.
In November of the same year, these crypto-focused ETFs and ETPs globally garnered net inflows of $1.31 billion, contributing to a year-to-date net inflow total of $1.60 billion.
Elizabeth Warren – you are a liar. Stop the spread of FUD and mis information and research the #crypto sector, the technology and why Fortune 500 companies like Google, Walmart, IBM, Dell and hundreds of other well known companies have already begun building products on these…
— Holo (@Holo_Thunder) January 12, 2024
In the European region, specifically, crypto ETPs listed in Germany and Switzerland witnessed notable inflows of $663 million and $434 million in 2023, constituting 22% and 13% of assets under management (AUM), respectively, as reported by ETF Stream.
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