Crypto exchange-traded products (ETPs) in Europe face an uncertain liquidity environment as some market makers take a backstep amid regulatory and structural challenges.
The lack of involvement from investment banks due to the current regulatory environment has put added pressure on independent market makers that have started to reduce their participation since the collapse of FTX.
Elsewhere, the Securities and Exchange Commission’s (SEC) decision to greenlight physical bitcoin ETFs in the US earlier this year caused the floodgates to open.
Investors have piled $5.8bn into digital asset exchange-traded products (ETPs) so far in 2024, according to data from CoinShares, after pent-up frustration for a lack of ETF offering spot bitcoin exposure. The situation in Europe could not be more different.
Despite increasing adoption following the SEC’s decision, there remain serious questions about the inherent value behind bitcoin and other crypto assets.
On the one hand, crypto evangelists point to bitcoin’s potential as a store of value due to its decentralised nature and scarcity – there are only 21 million bitcoins available to be mined – however, the naysayers are just as adamant in their views.
The March 2024 issue of ETF Insider focuses on crypto ETPs, their role within multi-asset portfolios and the uncertain liquidity environment facing the asset class.
Also inside are the usual segments such as ETF of the Month (p.13), Education Corner (p.12), Fund Fights (p.14) and Expert Investors, where ETF Stream interviews fund selectors on the role of ETFs within their asset allocation (p.11).
Read the headlines below:
Leader: Will crypto ETPs ever be approved in the UK? (p.26)
ECB is right: ETFs do nothing to prove bitcoin’s inherent value (p.7)
ETF Buyers Club: When passive is not so passive (p.16)
The Patient Investor: Taking a long time horizon (p.18)
Does crypto have an inherent investment case? (p.20)
Crypto ETPs’ uncertain liquidity landscape (p.24)
Beyond Beta: A ‘quality’ problem (p.30)
Sponsored content from 21Shares and Xtrackers by DWS:
Bitcoin and ethereum’s intrinsic valuations (p.22)
Breakfast workshop Update on the fixed income ETF revolution (p.34)
ETF Insider is only available to professional investors and members of the ETF industry in Europe. To access the full issue of ETF Insider, click here.
