Gaining Exposure to Bitcoin with the Protections of Regulated Markets

Published on
October 5th, 2020
Duration
24 minutes

Gaining Exposure to Bitcoin with the Protections of Regulated Markets

Expert View - Crypto ·
Featuring Bradley Duke

Published on: October 5th, 2020 • Duration: 24 minutes

Bradley Duke, co-founder & CEO of ETC Group, explains the use of exchange traded commodities like BTCE and how they can help both institutions and individuals gain exposure to Bitcoin more easily. Duke explains the importance of security for an institutional grade product and describes the process they went through in choosing their Bitcoin custodian, Bitgo. He touches on the importance of Exchange Traded Commodities to crypto assets - they are easing the burden of asset custody. Duke further elaborates on how the ETC products have all of the standard protections of traditional regulated markets while still giving you exposure to the new crypto asset class. He describes this as less risky, in some aspects, than holding Bitcoin itself. Filmed on September 8, 2020.

Comments

Transcript

  • AW
    Andrew W.
    15 October 2020 @ 01:45
    2% expense ratio is a no-go. The most I'd pay is 0.2%. Any investor or institution in the world can self-custody with some education. Short-term traders will use BTC exchanges, and long-term cold hodlers will self-custody or use a custodian with a much smaller expense ratio.
  • he
    hanni e.
    6 October 2020 @ 09:38
    December last year, WisdomTree launched their own BTC-ETP. Its TER is 0.95%. It is listed in Switzerland. Can anybody explain if there's a drawback to this product compared to the one presented in the video? Its TER seems to be 2%, which is quite a lot.
    • DA
      David A.
      13 October 2020 @ 06:26
      Volume is tiny. The price quoted on Interactive Brokers suggests a bid/ask spread of over 5%.
  • JS
    Jon S.
    6 October 2020 @ 20:27
    This is interesting I have gold via ETC. Is there now in Deutsche Börse ETC for BTC and ETH? Can someone answer this please.
    • JS
      Jon S.
      6 October 2020 @ 20:29
      Which are the nemonics?
    • JS
      Jon S.
      6 October 2020 @ 20:32
      Can someone confirm this ISN? DE000A27Z304
    • JS
      Jon S.
      6 October 2020 @ 20:32
      Is there ethereum too?
    • AA
      Andrew A.
      7 October 2020 @ 14:23
      In the UK the Financial Conduct Authority has just announced that Crypto Exchange Traded Products (ETP) cannot be sold to retail investors from 6th January 2021. As I understand it you will be able to continue to hold after this date but not buy. (XBT Provider out of Sweden is probably the biggest Crypto ETP Provider with Bitcoin and Etherium ETPs).
    • JS
      Jon S.
      7 October 2020 @ 18:33
      Same for ETC?
  • PN
    Paco N.
    7 October 2020 @ 16:42
    Ethereum is an experimental network, it's not money and not a store of value. No one should buy it - kids are experimenting with your funds. BTC is mature gold.
  • MC
    Michael C.
    6 October 2020 @ 06:03
    Excellent discussion. Very clear description of product and its uses/advantages (and costs).
  • ND
    Noel D.
    5 October 2020 @ 22:01
    Bradley (or anyone who knows about this product): 1) Comments on availability in Canada/US. I went to my brokerage account and it was not available. 2) Does it trade at a premium to the underlying value of the BTC holdings (Greyscale GBTC trades between 5% and 15% of their actual holdings). Thanks for your presentation Bradley.
    • AI
      Andras I.
      6 October 2020 @ 04:52
      1, It's been available on IBKR for a while (but I'm not in Northern-America), listed on the IBIS German exchange - along with a few similarly structured ones from 21shares and Wisdomtree, which are a bit older and listed in Switzerland. All structured as ETP's with "physical" backing. There are also other cryptos repackaged (ETH for example) if one is really brave( see Grayscale ETHE vs ETHUSD). 2, He said they hold and track the underlying very well - seems to be true (other than the management fee) but the fund only have existed for a few months. Ho I still wonder though - why no one mentions CME BTC futures as an alternative? It's a regulated platform, comes FOPs for hedging and liquidity is better than most of these.
  • FR
    FLAVIO R.
    6 October 2020 @ 01:16
    Seems like European version of GBTC. Proper! Same question as Noel, does it trade at premium?