A crypto exchange-traded product (ETP) provider, Valour, has announced that it would issue crypto products to German banks. Accordingly, the two large German banks, Comdirect and Onvista, will provide their retail clients with crypto products.
The crypto asset management company has partnered with German banks to allow their customers to integrate the Valour ETP as part of their investment portfolio. Once implemented, both banks can access the full ETPs on Valour.
A Regulated Crypto Product Broker
Valour has come a long way in its quest to cement its place as the largest provider of digital asset products. The firm targets big brokers and financial institutions looking to take a step into the crypto space. Its recent collaboration with justTRADE helped position it as a leading industry player.
According to Russell Starr, the CEO of Valour, the current agreement with Comdirect and Onvista is another milestone for the firm. Valour is looking to foster a long-term working relationship with brokers and banks.
The crypto market represents another opportunity for the firm to expand its operations, added Starr.
Meanwhile, the crypto ETP includes Bitcoin Zero and Ethereum Zero investment products. An interesting thing about the crypto ETP is that it carries not a cent in management fees for transactions.
Furthermore, Valour also provides crypto ETP offerings for most of the top digital currencies like Cardano, Polkadot, UniSwap, Avalanche, Cosmos, and Solana.
The ETP is a fully hedged investment product designed for traditional financial service providers and their clients.
The Boom of the ETP Market
Like other financial assets, cryptocurrency comes with various investment products to attract willing investors. As crypto adoption rises, ETPs are taking the lead to become the next investment tool for digital asset enthusiasts.
Furthermore, institutional investors are flocking to ETP as they seek to gain access to cryptocurrency. Established banking giants like Goldman Sachs and JPMorgan have been purchasing ETPs for their clients for some time now. Amid the growing interest in crypto, so are the types of ETPs fund managers are listing on their platforms.
In the meantime, Europe appears to be at the forefront of ETP listing, going by the number of firms issuing such services. Due to the known volatility in the crypto market, investors are doing their due diligence before investing. As a result, some have begun to have exposure to Bitcoin and Ethereum in their investment portfolio.
A crypto ETF expert, Laurent Kssis, revealed that 2020 was the year that crypto ETP exploded, with market value clocking at $3.1 billion. Kssis added that the success of Bitcoin primarily drives the interest in crypto ETP. Moreover, it is fueled by large institutions’ massive adoption of cryptocurrency.
However, experts noted that the institutional interest in crypto assets has not achieved what they expected. That is turning Bitcoin into the digital haven ahead of gold.
Meanwhile, institutional players seem to favor gold as a hedge against inflation, which works contrary to what the industry envisioned.