21Shares launches world's cheapest physical Bitcoin ETP

Exchange-traded product provider unveils new product adapted to latest market realities

Pile of Bitcoins rest on a desktop                                 
21Shares’ new ETP has an expense ration of 0.21% to reflect Bitcoin’s total 21 million supply – Photo:Shutterstock

The cheapest physically-backed Bitcoin exchange-traded product (ETP) in the world was launched on Wednesday by 21Shares, as it rolled out a range of products designed to help investors through the ongoing crypto winter. 

The 21Shares Bitcoin Core ETP (CBTC) is listed on the SIX Swiss Exchange and offers low-cost exposure to the world’s largest cryptocurrency with a total expense ratio of 21 basis points (0.21%). 

According to 21Shares, this expense ratio is 44 points lower than the next lowest product. It is also a conscious reference to Bitcoin’s total supply of 21 million units. 

At $20,062 as of 17:15 BST (UTC +1) on Wednesday 29 June, Bitcoin was trading 71% below the $68,789 all-time high that it had enjoyed eight months earlier. 

21Shares: Investors want to ‘buy-the-dip’

Arthur Krause, director of ETP product at 21Shares, said: “Given the current market environment, many investors are looking to ‘buy-the-dip’ and generate the maximum potential long-term return. Our Crypto Winter Suite will provide ways for investors to dip their toes in the water at some of the lowest costs on the market.”

The CBTC ETP will lend out a portion of its underlying Bitcoin through a fully collatoralised basis in order to offset operating costs. The lender will not start until the product achieves the scale deemed appropriate by 21Shares. 

The company’s CEO and co-founder, Hany Rashwan, hailed the product, adding: “While we’re experiencing a tougher market today, interest in the long-game of cryptocurrency has not wavered.”

Other companies have also been trying to adapt to recent crypto realities with the launch of new investment products. Last week, ProShares launched BITI, the first short Bitcoin exchange-traded fund (ETF) in the US. The fund inverses the performance of an index of Bitcoin futures, offering investors an opportunity to capitalise on the crypto’s occasional sudden sell-offs.

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