Marex Solutions has started quoting on the newly launched Proshares Bitcoin Strategy ETF, to expand its structured product offering linked to Bitcoin and Ethereum.

The non-banking issuer has launched the first ever autocallable note on BITO - the Proshares Bitcoin Strategy ETF.

The Proshares Bitcoin Strategy ETF launched last week is the first-ever ETF in the US-backed by Bitcoin futures which is also the first ETF to reach the US$1bn mark in the shortest period of time. 

We continue to see a lot of demand on crypto-linked products, such as autocalls and the cash & carry trade - Joost Burgerhout, Marex Financial Products

The autocall on BITO has a six-month maturity, with a European barrier at 70% and a coupon of 35% pa.

“Pricing wise it looks very similar to Bitcoin itself,” Joost Burgerhout (pictured), head of Marex Financial Products, told SRP. “We continue to see a lot of demand on crypto linked products, such as autocalls and the cash & carry trade.

“With the launch of the Proshares Bitcoin Strategy ETF it was only natural for us to offer this ETF as a new underlying for our structured notes.”

Marex Financial Products continues to be at the forefront of developments in the crypto market providing access to investors to the world of digital assets via traditional private banks.

SGX iEdge licences its Bitcoin index

Singapore Exchange (SGX) has licensed its iEdge Bitcoin Index to Propine, the first Monetary Authority of Singapore (MAS)-licensed digital asset custodian and a Bitcoin ETF service provider.

SGX launched the iEdge Bitcoin Index in response to ‘strong market demand for best-in-class indices’ that track the price performance of Bitcoin and other digital assets. The index was developed in collaboration with UK-based digital asset market data provider CryptoCompare and has received strong interest from market stakeholders since its launch.

It marks the first partnership in investing this index, which went live in September 2020 along with the iEdge Ethereum Index.

“As enthusiasm in index-linked passive investing continues to grow, investors’ demand for access to emerging and big market themes in a low-cost and efficient manner is on the rise,” said Ng Kin Yee, head of data, connectivity and indices.

The partnership caters to the region’s asset managers and institutional investors interested in Bitcoin, according to Tuhina Singh, CEO of Propine.

Calculated by CryptoCompare using Volume Weighted Average Price (VWAP) aggregated from top rated exchanges, the two cryptocurrency indices aim to show the best price estimation for crypto traders and investors to value cryptocurrencies in their portfolio at any time.

The start-up declined to elaborate on its plans to launch the index-linked ETF.   

FTSE Russell launches Digital Asset Index Series

FTSE Russell has launched three new digital asset indexes including the FTSE Bitcoin Index, the FTSE Ethereum Index and the FTSE Cardano Index.

The FTSE Digital Asset Index Series is designed to provide market participants with a mechanism to evaluate digital asset investments and prices.

The indices were developed in response to investor demand for benchmarks to accurately and methodically capture performance of digital assets, allowing for the more seamless integration into traditional portfolio analysis and processes, according to Kristen Mierzwa, Managing Director, ETP Strategy and Business Development, FTSE Russell.

‘FTSE Russell has developed a ground-up transparent methodology that starts with the accuracy of its pricing data, which is used to establish the building blocks for more comprehensive index inclusion,’ said Mierzwa.

‘At the heart of the index series methodology, mechanisms have been put in place to determine exchange and asset level eligibility. For digital assets, this vetting criteria is the cornerstone for reliable price and index data.’

The index provider is working to blend these new asset types into traditional financial thinking around research, trading, investment and monitoring, which requires that they work with existing structures.

Since 2018, FTSE Russell and Digital Asset Research (DAR) have worked to build a ‘robust’ framework and to align digital asset data with traditional investment infrastructure. Initially, the firms launched a suite of live, ticking indicative digital asset indices as a proof of concept.

Valkyrie files application for Leveraged Bitcoin Futures ETF

Valkyrie Funds, the second fund manager to bring to market a futures-based Bitcoin ETF, has filed an application with the US Securities and Exchange Commission (SEC) to launch the Valkyrie XBTO Levered BTC Futures ETF.

The leveraged tracker which will trade under the ticker BTFX on the Nasdaq Exchange will seek to deliver 1.25 times the return of a Bitcoin reference price and will be able to hold derivatives such as futures, options and swaps.  

Valkyrie Funds launched its Valkyrie Bitcoin Strategy Fund (BTF) on 22 October - BTF allows investors to gain exposure to Bitcoin in a regulated investment vehicle without having to buy the cryptocurrency directly. The ETF premiered alongside the ProShares Bitcoin Strategy ETF (BITO) which was listed also last week on the NYSE Arca, and accumulated more than US$1 billion in assets in just days. 

Unlike ETFs that track a basket of securities, the value of the Valkyrie Bitcoin Strategy ETF is derived from the price movement of Bitcoin futures contracts. For this ETF, Valkyrie partnered with US Bank Fund Services for custody.

The Valkyrie Bitcoin Strategy Fund is the first cryptocurrency futures-focused ETF on Nasdaq, joining more than 400 listed ETFs already trading on the exchange.

Crypto investors are in the market for the long-term

Around two out of five investors in cryptocurrencies have been in the market for three or more years, underlining how the market is moving into the mainstream, according to new research from UK-based money app Ziglu.

The survey carried out by independent research company Consumer Intelligence on behalf of Ziglu – on a representative sample of 1,017 adults aged 18 and over between 19 and 21 August - found that 40% of current crypto investors in the UK have held digital currencies for three or more years, with eight percent saying they have been in the market for five or more years.

Almost one in five (18%) have started investing in the past six months, with six percent saying they have only come into the market in the past three to four months, despite recent price falls and market volatility.

The research shows that only 12% of crypto customers buy currencies through regular monthly payments. Around 38% say they bought their cryptocurrencies in a single lump sum, while half (50%) bought their holdings in a number of lump sums when they thought the time was right.

Ziglu’s study found 69% of investors estimate they’ve spent less than £1,000 (US$1,362) on cryptocurrencies, and around 12% of investors questioned estimate their crypto holdings are worth £5,000 or more.