The investment firm Bitcoin Capital hopes that its Exchange Traded Product (ETP) will fuel the mass adoption of cryptocurrencies. The company’s listed product is called “Bitcoin Capital Active” or BTCA is listed on the main Swiss stock exchange. You can allocate funds to fifteen different cryptocurrencies and fiat funds at will. Daniel Diemers, one of the directors of FICAS, the company that manages the product, Cointelegraph told these types of products are essential to the mass adoption of Bitcoin:
It’s easy to negotiate. We’ve already seen some of the most popular online banks here in Switzerland like Swissquote, a bank that is entirely based on your smartphone. It was easy for them to list the product. So if you work with any of these banks or operate online brokers, it is very easy to find the product.
The fact that the manager is free to allocate funds for both cryptocurrencies and fiat money at his discretion gives him an edge over similar products, Diemers said. He made it clear that the team relies on four frameworks to optimize their portfolio: technical analysis, fundamentals, sentiment analysis, and what he calls a “model agency”. The latter boils down to observing the behavior of other key market participants. The task is publicly available and is updated monthly. Currently, almost 83% are invested in Bitcoin, 12% in Bitcoin Cash (BCH) and only a little more than 1% in Ethereum (ETH).
The face value of BTCA is 100 Swiss Francs and is currently trading at a premium of 10%. Compared, Grayscale’s Bitcoin Trust (BTC) typically offers a 20% premium on the OTC market. This premium can be explained by the fact that it is more convenient for investors as they don’t have to deal with portfolios or custodians. You can also get such a profit margin due to the limited competition within the room.