Investing in Physical Bitcoin ETP (BTCE) is an alternative strategy for building wealth through crypto assets. Among the various options available, Physical Bitcoin ETPs (Exchange-Traded Products) like BTCE stand out as some of the best Bitcoin investment products.
Since US ETFs can only be accessed in Europe by professional investors, many EU retail investors ask themselves which is the best UCITS equivalent ETF available in the market to invest in physical backed Bitcoin?
Understanding Physical Bitcoin ETP (BTCE)
A Physical Bitcoin ETP (BTCE) is an Exchange-Traded Product that directly holds Bitcoin, allowing investors to gain exposure to Bitcoin’s price movements without the need to manage the cryptocurrency themselves. BTCE is designed as bearer bonds under German Law directly tracking the performance of Bitcoin, providing a seamless way for investors to include Bitcoin in their traditional investment portfolios. By holding physical Bitcoin, BTCE ensures that each ETP unit corresponds to a specific amount of Bitcoin, offering transparency and security for investors.
Why Choose Physical Bitcoin ETPs
When it comes to investing in Bitcoin, ETPs offer a convenient and regulated way to gain exposure to the cryptocurrency.
Physical Bitcoin ETPs like BTCE are often considered amongst the best Bitcoin investment products for several reasons.
Firstly, Physical Bitcoin ETPs provide direct exposure to Bitcoin, meaning that each unit of the ETP is backed by actual Bitcoin held in secure custody. This direct correlation ensures that the ETP accurately reflects Bitcoin’s price movements.
Secondly, unlike purchasing Bitcoin directly from exchanges, Physical Bitcoin ETPs operate within a regulated framework, providing an added layer of security, transparency and trust for both institutional and retail investors.
Additionally, these ETPs are highly liquid, allowing investors to buy and sell shares easily on a major stock exchange such as XETRA without the complexities associated with cryptocurrency exchanges. With professional custodians managing the security of Bitcoin, investors are relieved from the risks of self-custody, such as hacking or loss of private keys.
Performance Overview: Bitcoin ETP Annual Returns
Understanding the Bitcoin ETP annual returns is crucial for assessing the performance of your investments. BTCE aims to mirror the performance of the Bitcoin market, which has shown significant growth over the years. Physical Bitcoin ETPs have consistently tracked Bitcoin’s price, providing returns that align closely with the cryptocurrency’s market movements. The Bitcoin market’s volatile nature offers both high growth potential and significant risk, making it essential for investors to stay informed and manage their portfolios accordingly.
Bitcoin Investing
Investing in Bitcoin through Physical Bitcoin ETPs like BTCE is a popular choice for investors seeking to participate in Bitcoin’s performance without dealing with the technical aspects of cryptocurrency trading and custody.
Moneybase ensures that your investments are executed efficiently and securely. Additionally Money and investments entrusted on Moneybase are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09), all investment services provided on the platform are provided by Calamatta Cuschieri Investment Services Ltd.
Bitcoin Forecast
Predicting the future performance of Bitcoin involves analysing various trends, namely;
- Adoption Rates: Increased adoption by businesses and institutions can drive demand and positively impact Bitcoin’s price.
- Regulatory Environment: Changes in regulations can affect market sentiment and Bitcoin’s accessibility.
- Technological Advancements: Improvements in blockchain technology and scalability solutions can enhance Bitcoin’s utility and value.
- Macro-Economic Factors: Inflation rates, interest rates and their forming correlation since bitcoin’s inception
- Investors’ behavioural trends; investor behaviour towards Bitcoin as a store of value.
Market sentiment for Bitcoin is positive with the new Trump administration in the US, and is also being driven by its growing status as digital gold and its increasing acceptance in the financial ecosystem. Nonetheless, predicting the future value of Bitcoin remains a challenging task. Potential risks such as regulatory crackdowns, Bitcoin high volatility, technological vulnerabilities, and market manipulation could pose challenges to future returns.
Physical Bitcoin ETP Price
The Physical Bitcoin ETP price varies based on market conditions and the underlying performance of the Bitcoin market. To keep track of the price for BTCE, simply log in to your Moneybase account, search for BTCE, and you can view the current ETP price along with detailed historical performance data. This allows you to monitor your investments effectively and make informed decisions based on real-time and past market performance.
Understanding Price Movements
Market sentiment plays a significant role in the price movements of Bitcoin ETPs. Positive news about the adoption and regulation of Bitcoin can drive ETP prices up, while negative news can have the opposite effect. Additionally, macro-economic conditions and other factors can influence investor confidence and, consequently, ETP prices. Global events like technological breakthroughs, geopolitical tensions, and major economic policies can also cause price volatility, impacting the overall performance of Bitcoin ETPs.
How to Invest in Physical Bitcoin ETP via Moneybase
Moneybase is a user-friendly investment platform that simplifies the process of investing in Physical Bitcoin ETPs like BTCE. Follow these steps to start investing:
- Don’t have a Moneybase account? Create one online within a few minutes. Download the Moneybase app and get started!
- Fund Your Account: Send a bank account transfer to your Moneybase IBAN or deposit instantly via card.
- Search: Use the search bar on Moneybase to find BTCE or navigate to the Crypto section via the discovery section. Click on the ETP to view its details, including current price, performance, and other relevant information.
- Place Your Order: Decide on the investment amount and choose between a market order (buy at current price) or a limit order (set a specific price). Review your order details and confirm the purchase.
- Monitor Your Investment: Use Moneybase’s dashboard to track the performance of your Vanguard ETP. Consider setting up automatic dividend reinvestment (if applicable) to grow your investment over time and periodically review and adjust your investments based on your financial goals and market conditions.
Investing in Physical Bitcoin ETP (BTCE) offers a the opportunity to gain exposure towards Bitcoin in a regulated environment. With Moneybase, you can easily invest in these ETPs, check their prices, and monitor your investments with ease.
Disclaimer
This is a marketing communication addressed to knowledgeable and experienced investors. The information herein does not represent and shall not be construed as investment advice, recommendation, or inducement to buy or sell financial instruments. The information presented is general in nature and is not directed to any specific person, and is therefore provided to you on the express basis that it is not advice, and you may not rely upon it in making any investment decision. Investments in any financial instruments involve risks; you should conduct your own research before making any investment decisions and seek the assistance of a financial advisor if in doubt.
Before making any investment decision please carefully examine the Key Information Document (KID) available on Moneybase platform in the instrument details section, or contact us at any time for assistance. The KID contains important information in relation to the security, including the associated risks.
This is a complex instrument and may not be suitable for retail clients. The value of this instrument may be subject to high volatility. Past performance is not indicative of future results. The value of your investment may go down as well as up and you may lose some or all of the money you invest.
Calamatta Cuschieri Investment Services Ltd (CCIS) is licensed by the MFSA to undertake investment services business under the Investment Services Act. CCIS is a subsidiary of Calamatta Cuschieri Moneybase plc with registered address at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara, BKR 9034, Malta.
FAQs
A Physical Bitcoin ETP (BTCE) is an Exchange-Traded Product in the form of bearer bonds that are backed and reflect the value of Bitcoin, allowing investors to gain exposure to Bitcoin’s price movements without managing the cryptocurrency themselves. BTCE is designed to track the performance of Bitcoin, providing a seamless way to include Bitcoin in traditional investment portfolios.
You can check the Physical Bitcoin ETP price easily through Moneybase. Log in to your Moneybase account, search for BTCE, and view the current price along with historical performance data.
The Bitcoin market has historically delivered significant annual returns, though they are highly volatile. BTCE aims to mirror these returns by tracking Bitcoin’s performance closely. However, past performance is not indicative of future results, and returns can vary based on market conditions and economic factors.
To invest in a Bitcoin ETP via Moneybase, sign up for an account, fund your account, search for BTCE, place your order, and monitor your investment through the Moneybase dashboard.
Trading BPCE on Moneybase starts at just EUR 1.25 per trade.
