An exchange-traded product (ETP) is a type of investment product that is traded on a stock exchange. ETPs can be either equity-based or debt-based.
Equity-based ETPs track the performance of a particular stock or group of stocks, while debt-based ETPs track the performance of a particular bond or group of bonds.
Bitcoin ETPs are equity-based products that track the performance of the digital currency Bitcoin. There are currently two Bitcoin ETPs available on the market, both of which are traded on the Swiss Stock Exchange. The first Bitcoin ETP was launched in November of 2017 by the company Amun AG. The Amun Crypto Basket Index ETP tracks the performance of the top 5 digital currencies by market capitalization, including Bitcoin, Ethereum, XRP, Litecoin, and Bitcoin Cash.
The second Bitcoin ETP was launched in February of 2019 by the company 21 Shares AG. The 21Shares Bitcoin ETP tracks the price of Bitcoin on the Bitstamp exchange and is denominated in Euros.
Bitcoin ETPs offer investors exposure to the digital currency without having to directly purchase or store it. As such, they provide a convenient and regulated way to invest in Bitcoin.
Both Amun and 21Shares have been approved by the Swiss Financial Market Supervisory Authority (FINMA), which adds an additional layer of protection for investors.
Bitcoin has seen tremendous growth over the past year, with its price rising from around $1,000 in January of 2017 to over $10,000 by December. However, the digital currency has also been volatile, with large swings in price occurring on a regular basis.
As a result, investing in Bitcoin via an ETP may not be suitable for all investors and should only be done with caution.