Three new exchange-traded products (ETPs) tracking altcoins have been added to the portfolios of ETC Group, a British crypto investment and ETP issuer. Avalanche, Cosmos, and Polygon’s native tokens are tracked by the firm’s latest investment vehicles.
By comparison, the respective tokens – AVAX, ATOM, and MATIC – are among the top 25 cryptocurrencies according to the aggregator platform CoinMarketCap. Market capitalization for 10th-ranked AVAX is $24.7 billion, while for seventeenth-ranked MATIC comes in at $12.8 billion. ATOM’s $8.6 billion equivalent figure ranks five positions below MATIC’s.
Market Penetration in Switzerland and Germany of Polygon and other Altcoins
As reported by ETF Stream on Monday, the ETC Group Physical Cosmos ETP, the ETC Group Physical Polygon ETP, and the ETC Group Physical Avalanche ETP each have 1.95% total expense ratios. In addition, the ETF-focused reporting platform revealed the three ETPs have been rolled out on one of Europe’s top ETF exchanges, Swiss SIX in euros, British pounds, and US dollars.
The launch was facilitated by independent ETF investment platform HANetf, which had previously been responsible for marketing and distribution of the Group’s existing ETPs.
“ETC Group chose again to work with us in order to extend their crypto ETP portfolio with new products. HANetf’s founder, Hector McNeil, commented, “ETC Group has established itself as a leader in crypto investment products.”.
Furthermore, the ETPs will be listed on the Deutsche Börse in Frankfurt next month.
Altcoins are of interest to the ETC Group
ETC Group now offers three crypto-backed exchange-traded investment products. In December, the firm launched ETPs that track Tezos, Cardano, Solana, and Polkadot, among other top altcoins.
Bradley Duke noted that investors have been increasingly interested in well-performing altcoins in his remarks about the latest ETP launches.
Investing in some of the newer, innovative cryptocurrencies is becoming increasingly popular – especially those with large market caps, he said. Our partnerships with liquidity providers enable us to provide liquidity and tight trading spreads to investors with the addition of these ETCs.”
Thanks to a series of product listings, ETC Group has seen massive growth over the last dozen months. In October last year, the firm reached the milestone of $1.5 billion in assets under management before hitting the $2 billion mark the following month. In particular, it took ETP issuers more than a year and a half to reach $1 billion in AUM, and another eight months to reach $1.5 billion.
European ETPs backed by cryptos
Due to compliance issues, exchange-traded funds have had a difficult time entering the market, but ETPs have succeeded, particularly in Europe. Several companies (some jointly) have debuted ETP products tracking various cryptocurrencies on some of Europe’s leading exchanges over the past week.
In the past week, CoinShares teamed up with Sam Bankman-Fried’s FTX to provide physical Solana ETPs to European investors via Germany’s leading exchange platform, Xetra. ETC Group’s Monday announcement was followed by WisdomTree’s announcement of three new ETPs tracking the performance of Solana, Cardano, and Polkadot.
Increasing institutional investor interest in these offerings has resulted in the proliferation of ETPs in Europe, as investors look for ways to gain a foothold in the crypto sector without taking on the risks associated with direct investment in crypto assets. Analysts attribute the rise of altcoin-backed ETPs to investors’ desire to diversify beyond the market leaders Bitcoin and Ethereum.