FOMO

Momentum

Grayscale Bitcoin Trust

Source: AdobeStock / Craig 
<p>European crypto enthusiasts are on the sidelines watching as the <a href="https://www.sec.gov" rel="sponsored">U.S. Securities and Exchange Commission</a> (SEC) approved eleven spot bitcoin exchange-traded funds experiencing FOMO (fear of missing out) – it’s worth noting there are already plenty of products available in Europe. </p> 
<h4><b>Crypto ETPs in Europe&nbsp;</b></h4> 
<p> Although the US market is bigger and has more potential to unlock more inflows into Bitcoin (hence all the excitement around a spot Bitcoin ETF being approved) — Europe already has exchange-traded products (ETPs) available for retail investors. Spot Bitcoin ETPs have existed in Europe for a long time giving investors exposure to crypto.&nbsp;&nbsp;Europe is way more progressive on the cryptocurrency product front.</p> 
<p><a href="https://bitcoinmagazine.com/markets/scandinavia-leads-europe-latest-bitcoin-exchange-traded-note-launch" rel="sponsored">Back in May 2015</a>, Sweden’s XBT Provider AB announced the authorization of <a href="https://etp.coinshares.com/xbt/bitcoin-tracker-one" rel="sponsored">Bitcoin Tracker One</a> (CoinShares product). This was the very first Bitcoin-based security made available on a regulated exchange. In October 2015, it launched Euro-denominated Bitcoin-based security, Bitcoin Tracker EUR, available through Nasdaq Nordic. </p> 
<h3 id="b-main-providers-b"><b>Main Providers&nbsp;</b></h3> 
<p> European ETP players in the market include 21Shares, CoinShares, WisdomTree, VanEck, Valour, Invesco, Hashdex, ETC Group.&nbsp;It is unlikely a Bitcoin ETF will list in Europe due to regulatory hurdles. Laurent Kssis, director at financial services firm CEC Capital, explains a Bitcoin ETF would never exist under UCITS laws in Europe, an ETF in definition is a basket of stocks and offers diversification where no one component has more than 20% of allocation. </p> 
<h3 id="b-crypto-etf-and-etp-flows-b"><b>Crypto ETF and ETP Flows&nbsp;</b></h3> 
<p> On the <a href="https://cryptonews.com/news/spot-bitcoin-etfs-may-see-4-billion-inflows-on-day-1-of-trading.htm">first day of trading</a>, US spot bitcoin ETFs gathered over $4 billion in trading volumes. BlackRock’s product saw its ETF gather roughly a quarter of the volumes and the Grayscale Bitcoin Trust (GBTC) which was converted to an ETF saw almost half the volumes. Bloomberg Intelligence analyst <a href="https://twitter.com/ericbalchunas/status/1745577782183108657" rel="sponsored">Eric Balchunas tweeted</a>, “there were 700,000 individual trades on the first day of trading in and out of the 11 spot ETFs.” “For context, that is double the number of trades for $QQQ (altho it sees much bigger $ volume bc bigger fish use it) So a lot more grassroots action (vs big seed buys) than I expected which is good,” tweets Balchunas. </p> 
<h4><b>ETPs and ETFs Listed Globally Gain Momentum</b></h4> 
<p> Crypto ETFs and ETPs listed globally have increased 119.6% in the first 11 months of 2023, according to ETFGI, an independent research and consultancy covering trends in the ETFs space.</p> 
<p>In November last year, crypto ETFs and ETPs listed globally gathered net inflows of $1.31 billion bringing year-to-date net inflows to $1.60 billion.In Europe, regionally, crypto ETPs listed in Germany and Switzerland saw inflows of $663 million and $434 million in 2023, accounting for 22% and 13% of assets under management (AUM) respectively, according to <a href="https://www.etfstream.com/articles/bitcoin-fuels-strongest-yearly-inflows-for-crypto-etps-since-2021" rel="sponsored">ETF Stream</a>.</p>

Crypto Products for European Investors Experiencing ETF FOMO

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Cryptonews.com

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