The firm’s flagship product, Bitcoin Capital Active Exchange Traded Product (BTCA), is actively traded on the Swiss Stock Exchange. Through discretion, the fund can invest in 15 cryptos and fiat currencies.
Daniel Diemers, a director of FICAS, the firm that administers the product, opined that such kinds of products are absolutely necessary for mass adoption of Bitcoin:
“It is easy tradable. We have seen already here in Switzerland that some of the popular online banks like Swissquote, which is a bank based entirely in your smartphone. For them, it was easy to list the product. So if you’re aligned with one of these online banks or you do online brokerage, it’s very easy to find a product.”
The major advantage is that the fund manager will be able to prudently set aside funds to both crypto and fiat, giving it an advantage over comparable products, stated Diemers. He explained that the team depends on four strategies to achieve maximum returns from their portfolio. They are fundamental, technical, and sentiment analysis, in addition to what he refers to as an “agency model”.
The last one refers to the process of monitoring the buying and selling pattern of other top players in the market.
The fund publishes the allocation details every month and can be accessed without restrictions. As of date, roughly 83% of the funds have been invested in Bitcoin, while 12% has been invested in Bitcoin Cash (BCH).
Notably, only slightly above 1% has been invested in Ether (ETH), the native crypto of Ethereum blockchain.
Currently, BTCA, which has a face value of CHF100, is traded at a premium of 10%. Relatively, Grayscale’s Bitcoin (BTC) Trust is usually traded at a premium of 20% in the OTC (over-the-counter) market.
The premium is justified as it is quite easy to get exposure to Bitcoin (BTC) and other cryptos, without going through the complex process of setting up wallets etc. Lesser competition in the crypto market is also a reason for the premium.