European white label ETP issuer HANetf unveiled a platform dedicated to the development and distribution of crypto-asset exchange-traded products.
After launching its first ETP in September 2018, HANetf currently has a roster of 44 products from around 20 customers. The company’s lineup, which collectively houses approximately $1.7 billion in assets, includes a diverse range of UCITS ETFs as well as physically backed gold and carbon ETPs.
In terms of existing digital asset capabilities, HANetf is currently distributing 14 single coin crypto ETPs on behalf of ETC Group. The suite includes directly backed products on Bitcoin, Ethereum, Litecoin, Solana, Cardano, Ripple, Bitcoin Cash, Stellar, Tezos, Polkadot, Uniswap, Polygon, Cosmos, and Avalanche.
The $380 million BTCetc – Bitcoin ETC Group Physical ETP (BTCE) and $70 million ETHetc – Physical Ethereum from the ETC group (ZETH)in particular, are among the most liquid in Europe and have become go-to products for institutional investors wanting direct access to the world’s two largest crypto assets.
HANetf intends to continue to work closely with ETC Group to expand its range while expecting products from new customers to enhance the total offering. According to HANetf, the company’s goal is to provide the most comprehensive crypto ETP platform in the world. In this vein, HANetf notes that it recently received 53 requests regarding the creation of new crypto-related ETPs despite high market volatility in the segment.
New clients of the platform will be able to choose between a “full service” model or a more basic model which may be of interest to managers with existing distribution networks or particular target markets in mind.
Importantly, the crypto ETP platform will be fully integrated with HANetf’s existing UCITS platform, benefiting from this deep ecosystem of over 60 distribution networks, 28 liquidity providers and a pan-European reach accumulated over the last four years. Customers will be able to reduce their effective launch timeline to just a few months and benefit from a shared cost model versus a full cost model of setting up a proprietary platform.
HANetf’s announcement of its new crypto ETP platform comes after the digital asset industry has fallen dramatically in recent months, from a total market capitalization of over $3 trillion at the end of 2021 to less than 1 trillion dollars today.
However, HANetf notes that the crypto industry was only worth $57 billion five years ago. Additionally, with the increasingly influential millennials and other younger generations being big proponents of the segment’s potential, HANetf believes the long-term trend for the asset class is still one of immense growth.
Nik Bienkowski, co-CEO and co-founder of HANetf, commented: “It is clear to us that many, despite the recent selloff, view cryptocurrencies as playing a vital role in our digital future. For the investor trying to gain exposure to cryptocurrencies, we believe there is no doubt that the ETP wrapper is one of the best ways to do so. Thanks to this new platform, we will be able to provide new innovative ETPs to the European market.
“We believe that many asset managers and traditional product providers such as investment banks have regulatory, operational and infrastructure issues with crypto, and an outsourced solution through HANetf makes a lot of sense.”