The data released by Bloomberg Terminal notes that these companies have indirectly invested in cryptocurrencies by buying shares in the world’s first ever Polkadot exchange-traded product (ETP).
Firms, which have invested in the investment vehicle in addition to JP Morgan are Goldman Sachs, Bank of America Merrill Lynch, London-based financial markets company TP ICAP, and Swiss investment bank UBS.
According to the Bloomberg report, the businesses have invested in the Polkadot ETP backed by Swiss company 21Shares. The firm’s stock recently debuted on the SIX Market, where they started trading at $22. Since then, the price has risen and is now over $36.
The growth of ETPs has opened the way for conventional companies to join the digital asset business. They allow their clients to invest in investments while preventing real access to crypto. These institutions don’t have a need to create a wallet or engage with retail traders. ETPs additionally enable the institutions to comply with regulatory guidelines.
Michael Lie, a senior executive at Flow Traders, confirmed that the sector has seen an enormous amount of interest. Flow Traders purchased one of the biggest quantities exchange-traded product shares launched by 21shares.
He underlined that there is a spike in the curiosity in purchasing cryptos lately. This cryptocurrency-related offerings are perfect opportunities to gain visibility in the sector, without a need to think about safekeeping.
Based on the Bloomberg Terminal info, it appears that Goldman Sachs purchased the most Polkadot ETP shares. Three tranches of shares equaling 9,600 were purchased by the bank. Nomura, a buyer with ticker symbol ‘INCA,’ bought 9,280 shares, while Flow Traders bought 6,897 shares.
The UBS and JPMorgan acquired 2,770 and 500 shares. ICAP currently has 1,000 shares, while Bank of America owns 2,200 shares. It seems that Goldman Sachs has not revealed the investment in the ETP. A spokeswoman for the bank claimed lack of knowledge about the trades, but will review the matter.
Polkadot ETP makes it evident that conventional financial institutions are willing to invest in digital asset offerings. The Polka Dot ETP was just released two weeks ago, and yet several of the world’s biggest banks have already shown interest in it. 21Shares CEO Hany Rashwan reported during the launch of the ETP that his company has received many requests to offer more digital assets.
According to him, institutional investors are searching for legal, limited-risk entries into the sector. Rashwan stated that he remains dedicated to serve institutional investors who want exposure to crypto-assets. He further stated that 21Shares continues to stay ahead of the curve with clear and creative financial products on the market.
Within two years from launch, 21Shares has emerged as one of the world’s largest cryptocurrency based exchange-traded product (ETP) providers. The company disclosed that it had surpassed the $1 billion worth assets under management. The firm offers 12 cryptocurrency trackers in all German, Swiss, and Austrian exchanges. Interestingly, the company claims of more than 90% share of the ETF market focused on cryptos.