Trading InfoSnack: Cryptophoria

Trading InfoSnack: Cryptophoria

The latest edition in the series of data-driven research articles from the Swiss Stock Exchange looks at the growing offer and demand for investment products with crypto-currencies as underlyings, and the different ways investors seek crypto-exposures.

The Swiss Stock Exchange is the world’s leading regulated marketplace to trade products with crypto-currencies as underlyings. With the dramatic rise in the market capitalisation and trading activity in crypto-currencies over the past 12 months, there has been a corresponding increase in creation and trading of synthetic crypto-products such as Exchange Traded Products (ETPs) and Structured Products (SPs).

In the new Trading InfoSnack Cryptophoria, the market analytics team of the Swiss Stock Exchange analyzes the net flows in aggressive turnover of ETPs and SPs listed on the Swiss Stock Exchange, and their correlation to the returns of a key underlying crypto-currency, to draw some insights on how different investors are seeking crypto-exposures.

World Leader in Crypto Products
Currently, the Swiss Stock Exchange offers investors a choice of over 100 products with crypto-currencies as underlyings from 7 issuers. In 2020, trading turnover reached a record of CHF 1.1 billion, and in February 2021, this record was surpassed in a single month with CHF 1.2 billion.

These figures illustrate the success story of crypto products on the Swiss Stock Exchange, whose origins can be traced back to 2016, when Bank Vontobel listed a structured product certificate that tracked Bitcoin. The first crypto index ETP was listed on SIX in November 2018 by Amun (now called 21shares) – a world premiere at the time. A physically backed ETP on Bitcoin as a single currency was listed by WisdomTree in December 2019, followed by the very first actively-managed Crypto ETP tradable on a regulated marketplace, launched by Bitcoin Capital in July 2020. More recently, further issuers joined and listed crypto-products on the Swiss Stock Exchange, such as ETC Group and CoinShares.

Insights on Relevant Trading and Market Structure Topics
The Trading InfoSnack articles are brief but insightful research features that provide commentary on market relevant trends, models and microstructure that influence the trading of Swiss securities, underpinned by in-depth analysis from the Equities team of the Swiss Stock Exchange.

Whilst the specific focus of Trading InfoSnacks will be on the trading of Swiss securities, the approaches and perspectives constructed also have more broad application across the EU securities trading landscape. To trading and market structure professionals with a focus on the EMEA region the previous Trading InfoSnacks are also of interest: Last Orders, Size MattersLiquidity under the Volatility MicroscopeClosing Auctions: What’s Hanging in the Balance?Back to the Future(s) and What’s in a Liquidity Smile?

Where Quality Comes as Standard
At the Swiss Stock Exchange, quality comes as standard. This applies to the performance and stability of our trading infrastructure, the liquidity, prices and spreads in our order books and our services in the listing, trading and post-trading space. As the clear reference market for all SMI shares, the Swiss Stock Exchange gives you the highest liquidity, the best prices and the tightest spreads. Find out more.