CoinShares Poised to Launch Exchange-Traded BITC; Bitcoin Hovers Below $40k’ Inflection Point’

Based in St.Hellier, Jersey, the digital asset manager Coinshares has announced that it will be launching its own exchange-traded Bitcoin product – BITC. The news comes at a time when Bitcoin has undergone a furious upward rally over the past few months.

According to CoinShares, its physical Bitcoin product is poised to go live as of January 19th, and be listed under BITC on Switzerland's SIX Exchange. As it becomes listed, BITC will be charged as an expense ratio of 0.98% for users. While listed on the SIX Swiss Exchange, several entities, such as the Ledger-backed venture company Komainu, Nomura Holdings, and CoinShares, will serve as custodians for investors.

Much like other digital assets in its class, the BITC will function as a physically-backed asset, meaning that it tracks and holds Bitcoin BTC -2.29% Bitcoin / USD BTCUSD $ 60,124.62
Volume 23.69 b Change -$1,376.85 Open $60,124.62 Circulating 18.85 m Market Cap 1.13 t
21 h UNIFY Financial Credit Union and Five Star Bank Allows Customers to Now Buy, Sell, and Hold Bitcoin 1 d Canadian Group-Retirement Savings Company Adds Bitcoin and Ethereum to its Plan 1 d Walmart is Running Pilot Program to Allow Users to Buy Bitcoin at 200 Coinstar Kiosks Across the US

In a statement on the launch of BITC, CoinShares Chief Revenue Officer Frank Spiteri shed light on consumer needs for a higher level of security and due diligence when it comes to digital assets:

“A lot of institutional clients have a very strong due-diligence process, and we wanted to bring to market a best-in-class product to embrace that demand.”

“We are ready, as of January, to embrace the forthcoming demand from institutional clients.”

Bitcoin Holds at $36,000, with ‘Inflection Point' in Sight

Over the first quarter of 2021, Bitcoin has broken beyond the $20,000 mark in a historic breakthrough – hovering around the $36,000 mark as of the start of this week. While this figure is below the level anticipated by strategists at JPMorgan Chase & Co., they still stress that Bitcoin's inflection point sits at $40,000 – a price range that many believe BTC must push past.

For many traders, this rally came as a surprise, as it rose and slid 10% away from its record of $42,000 on January 8th.

This ebullience of Bitcoin comes with its own risks, however. If it's unable to breach the $40k mark, it could suffer from a broader exodus of investors, sending its value into a downturn. This is according to a team of analysts, including Nikolaos Panigirtzoglou. Demand for associated products, like the Grayscale Bitcoin Trust, will help ascertain the future outlook.

According to this team of analysts, if Grayscale can sustain its current pace of $100 million per day over the next weeks, a Bitcoin breakout is more likely to happen.

Bitcoin Skepticism Remains Strong

Investors and analysts are torn on Bitcoins trajectory; plenty remains skeptical of it and its appeal to large institutions.

Axa Investment Managers Chief Investment Officer Chris Iggo is one of many that ‘dread to think' that risk officers see Bitcoin as a key asset within a core investment portfolio.

“For assets to be considered in a long-term investment portfolio, one should be able to attach some fundamental intrinsic value to them.”

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide