Scalable Capital enters crypto ETP market with bitcoin and ethereum launch

The neo-broker will offer two variants of each coin with different tax treatments

Scalable Capital has become the latest player to enter the crypto exchange-traded product (ETP) space with the launch of four bitcoin and ethereum ETPs.

The digital wealth manager and neo-broker confirmed the issuance of products via its Scalable Securities subsidiary on 15 November, offering two variants of each coin with different tax treatments.

According to the neo-broker, the Scalable Bitcoin (deliverable) ETN (SCLB1B) and the Scalable Ethereum (deliverable) ETN (SCLB1E) offer physical delivery of the cryptocurrencies and are designed for investors with a holding period of over one year.

Meanwhile, the Scalable Bitcoin ETN (SCLB2B) and the Scalable Ethereum ETN (SCLB2E) offer cash settlement and are “suitable for short-term” investment, the firm said.

The four ETPs are listed on the Deutsche Boerse, all with total expense ratios (TERs) of 0.95%.

It comes after Scalable Capital partnered with CoinShares last December to offer investors the chance to purchase digital asset ETPs via its Scalable Crypto platform.

The launches come at an unfavourable for the crypto industry following the collapse of the third-largest digital asset exchange, FTX, last week.

The news sent crypto ETPs into turmoil and led to the suspension of three FTX crypto ETPs on Monday.

Despite this, Scalable Capital has recorded strong growth over the past 18 months in part due to the high demand for ETFs.

The firm saw its assets under management hit €10bn in August, double the amount 12 months prior, with over 600,000 clients using its wealth platform.

In April, Scalable Capital expanded into Italy as they looked to disrupt a market boasting some of the highest costs for access to investment products in Europe.

Alessandro Saldutti, country manager for Italy at Scalable Capital, told ETF Stream at the time that Italian investors are increasingly starting to realise the benefits of low-cost ETFs.

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