Institutional investors see Bitcoin holding US$50,000 suggests ETP provider

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Bitcoin will at least have held onto its US$50,000 value by end 2021 according to a new poll of institutional investors by ETP provider ETC.

ETC Group, which is behind Germany and Switzerland-listed cryptocurrency tracker BTCetc (XETRA:BTCE), quizzed 66 investors across Europe that manage over EUR63bn of assets.

Nearly nine-tenths of 90% of respondents said they intend to increase their holdings in Bitcoin this year with 80% expecting the price to be above US$50,000 at the end of 2021.

More than half of the fund managers and institutional investors also said they are using exchange traded products (ETPs) to invest in Bitcoin, according to the report.

Some 53% said they used ETPs to get exposure to Bitcoin, far outweighing those who invested directly (21%). while 23% used structured products and 17% hedge funds.

BTCE’ has seen its size soar to over US$700mln since its launch in June 2020,

Bradley Duke, BTCE’s co-Founder, said tETPs have advantages over other investment vehicles open to investors looking to gain exposure to cryptocurrencies.

“A product like BTCE is traded on major stock exchanges and is central counterparty cleared, can help institutional investors gain access to the cryptocurrency market.

“It also simplifies the process of allocating to Bitcoin.

” Investors bypass the technical challenges of purchasing and storing Bitcoin and the risk of trading on unregulated crypto exchanges.

” Through an exchange traded product, the investors aren’t required to engage with blockchain technology at all.”

Duke added that BTCE is the most traded crypto-backed ETP on the Deutsche Boerse with no discount or premium.

The BTCE ETP tracks the price of Bitcoin and is 100% physically backed, providing investors with a safer and transparent way to gain exposure to Bitcoin, he said.

BTCE is distributed and marketed by HANetf.

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