Cryptocurrency investment manager ETC Group is going to offer Bitcoin ETP in London and Paris on June 7, using Swiss market rules to bypass British regulations, and will become the first Bitcoin ETP launched in the UK. This Bitcoin ETP has been released in Germany since June 2020, investors used this product as an “effective hedge against inflation.” said Bradley Duke, CEO of ETC Group.
What is the difference between Bitcoin ETP and ETF? Both Bitcoin ETF and ETP track Bitcoin price, people who invest the former will not own any Bitcoins, but for Bitcoin ETP by ETC Group, it is “100% physically backed cryptocurrency ETPs”, accroding to the ETP released in Germany, Bitcoins are under cold storage by crypto asset custodian BitGo. Therefore, Investors are eligible to trade, hodl and redeem Bitcoins through a regulated security.
In late April, the SEC said that it is expected to release its ruling on VanEck's Bitcoin ETF application on June 17, besides VanEcks, there are 5 more applications that are under review by the regulator. Bitcoin’s price fell 14% after Elon Musk dropped a bombshell by announcing Tesla would suspend Bitcoin Payment, along with the environmental controversy. In addition to the suppression of the Chinese government, Bitcoin dropped from US$65,000 to US$30,000. The high volatility and price manipulation concern still are the consideration of the SEC whether Bitcoin ETF should be approved or not.