The world of Exchange Traded Products has witnessed tremendous growth and improvement since the second quarter of 2021, which has attracted many investors.
The industry now stands at about $5 billion globally, which is a far cry from its almost non-existent value some two years ago.
These crypto-assets have offered investors a safe transition into the crypto world without bearing the full brunt of the risks involved with the physical ownership of the individual cryptos. Although, we don’t see crypto twitter influencers talk much about ETPs.
This convenient and largely secure class of assets has caught the interest and attention of several countries across the globe, particularly in Europe. Currently, Europe is the top player in the ETP industry.
Europe has about $7 billion worth of assets and 73 documented crypto ETPs. It accounts for roughly 57% of the ETP industry on a global scale. At present, Europe holds the record of having the highest amount of crypto ETP listings in the world.
Canada presently has 17 registered ETPs. Latin America has 7 while the U.S has 3.
Within Europe, some countries stand out in their adoption of crypto ETPs, one of them being Swiss. From its initial ETP debut, which was held about four years ago, till now, the Swiss Exchange has not slowed down. The Swiss exchange (SIX) has recently updated its record of cryptocurrency ETPs.
These newly added ETPs will join the long list of nearly 250 cryptocurrency investment exchange derivatives available for exchange on the SIX platforms.
The acronym ETP simply means Exchange Traded Products. These derived economic tools are used to track the rates of contracts, stocks, currencies (either fiat or cryptocurrency), properties, and shares, among others.
ETPs are usually traded on exchanges, similar to the way stocks are. These exchange-traded products have subsisted for about 30 years, but they only recently gained widespread attention from several investors.
Crypto ETPs are used to trail the price of one or several digital currencies, which are traded daily. The daily share price of crypto ETPs also fluctuates depending on the rate of swapping, purchase, and trading of different digital currencies.
The factors of volatility and uncertainty clouding cryptocurrency and blockchain technology in general still scare off probable investors as these investments are regarded as too risky and uncertain. This problem led to the development of a solution, the use of crypto ETPs.
Perhaps the most significant benefit of ETPs is the fact that they give the investors the opportunity to acquire crypto shares while bypassing the risk that comes with outright ownership of the said crypto assets.
One other benefit of ETPs is the provision of a means of contact with crypto devoid of the additional costs that come with its physical ownership.
Charges like custody charges, digital wallet’s annual charges, network and transaction fees, gas fees, and other hidden charges which accompany the ownership of crypto are outsourced to ETP providers rather than investors.
Crypto Exchange Traded Products usually amass investments in prominent and valuable cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), among others.
These crypto ETPs are also subject to regulation where necessary, in accordance with the laws of the individual countries where they are used. For instance, the Swiss Stock Exchange or SIX controls all operations relating to ETPs in Switzerland.
Lately, the SIX Swiss Exchange openly declared the listing of two novel carbon-neutral cryptocurrency derivatives. These two new currencies bring the overall figure of active cryptocurrency ETPs to an aggregate of 155.
The latest additions are the Bitcoin Zero and, of course, the Ether Zero. This move is a dive further into cryptocurrency’s much anticipated carbon-neutral future.
Leading cryptocurrency ETP issuer, Helveteq, and member of the Swiss Exchange, alongside a Fin-tech laboratory, have joined hands together in a movement against the ‘carbonization’ of crypto.
These companies collectively believe that the carbon prints of cryptocurrencies need to be totally eradicated.
They also believe in developing sustainable remedies to combat this problem, hence the need for Bitcoin Zero and Ether Zero.
These recent ETPs will allow investors to put money and resources into the two leading profitable digital currencies globally, Bitcoin and Ethereum.
Perhaps the most interesting aspect of this is that investors can invest without worrying about the carbon prints of these currencies.
These current ETPs provide an environmentally friendly and overall carbon-neutral investment opportunity for investors.
The environmental effect of cryptocurrency is a topic that has been hotly debated in the crypto community, but even at that, no solution has been forthcoming. The traditional crypto mining system Proof of Work (PoW) has been attributed to the generation of large amounts of carbon.
This is due to the huge amounts of energy consumed during the mining process, which leads to the emission of harmful carbon into the environment.
As a result, the European Union (EU) made a move to ban the protocol, but the motion was largely voted against. This decision allowed the continued use of Ethereum, Bitcoin, alongside other PoW-dependent cryptocurrencies.
Despite this development, a search has been ongoing for carbon-neutral cryptos. Apparently, the search is over following the release of these new ETPs.
The extensive exploration done by Helveteq, alongside College of Zurich’s Fin-tech Innovation Laboratory, created the newly listed ETPs.
Following the growing interest in crypto ETPs, there is no doubt that the industry’s worth will grow in leaps and bounds. Although the crypto world has suffered a devastating decline causing a 6.25% plunge in recent times.
The introduction of these ETPs can be the boost that the industry needs. Intending to bridge the gap between remedies to the problem of carbon, the novel Swiss Carbon Neutral ETPs show the environment and blockchain technology alongside generating sustainable emendous promise.
The future is bright for Bitcoin Zero and Ether Zero, and we can’t wait to watch it unfold.
Although Redot does not offer services in trading ETPs, you can trade popular crypto like ETH and BTC. You can also trade stable coin like USDT.