ETC Group, a British crypto-investment firm, has introduced new cryptocurrency exchange-traded products (ETPs) for Avalanche (AVAX), Polygon (MATIC), and Cosmos, according to a report published by ETF Stream (ATOM). In addition to tracking the value of the underlying cryptos, these ETPs are physically backed, which means that the underlying asset is used to settle crypto ETPs rather than a cash counterpart.
The ETC Group launched the first global Bitcoin ETP in 2020. Following the launch of these additional ETPs, ETC Group now offers eight physically-backed exchange-traded funds (ETFs) that track the value of various digital currencies. Investors have grown “increasingly interested” in acquiring exposure to the hottest altcoins to diversify their portfolios, according to Bradley Duke, the founder of ETC Group.
According to Duke, ETC Group’s latest crypto ETPs provide a significant amount of liquidity for high-quality trading. The new ETPs have been listed on the ‘Six Swiss Exchange’ in Zurich and the ‘Deutsche Boerse’ in Frankfurt, with total expense ratios (TERs) of 1.95 percent, according to the release.
Because they are protected from the factors that drive stock market and macroeconomic performance, crypto ETPs provide major diversification benefits for investors.