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Digital ETP securities - 3 things you must know!

19 March 2024

Bruce Jackson, Chief of Digital Asset Funds and Business

Digital Exchange Traded Products (“ETPs”) are transforming the way we invest. These pioneering securities offer a fresh perspective for investors seeking cost-effective and efficient ways to diversify their portfolios.

The three crucial aspects of digital ETPs: 

  1. Fee compression and the rise of crypto ETFs

With the recent approval of the US Spot Bitcoin ETF by the SEC, the introduction of Crypto ETFs is on the rise. This trend is driven by fee compression, which is forcing asset managers and distributors to find ways to streamline the cost of distributing new products. As a result, digital ETPs are becoming increasingly attractive due to their efficiency and lower costs compared to traditional investment vehicles. 

  1. Swiss

Issuance.Swiss is a turn-key solution, designed specifically for issuing digital ETP products. This platform enables asset managers and distributors to issue ETPs without having to consolidate invested assets on their balance sheets.  

  1. Streamlining issuance with automated processes

Issuance.Swiss streamlines the creation of eight corporate service and administration processes or agreements, as issuer, on behalf of the distributor. This reduces both time-to-market and costs associated with listing digital ETPs. By leveraging technology to simplify administrative tasks, issuers can focus more on strategic decision-making and delivering value to investors. 

Digital ETP securities offer a promising opportunity for investors looking to diversify their portfolios and take advantage of emerging opportunities in the financial markets. 

Why work with us? 

By partnering with us, you gain  ess to our comprehensive end-to-end platform for servicing digital assets. We provide a single-source solution for all structural and operational administration comprised of an unparalleled range of services, industry leading digital assets technologies, and a global team of experts across four dedicated digital asset Centre of Excellence locations. Whether you’re an existing or a new client, we can help you to overcome the challenges of managing digital assets funds. For crypto, digital hedge, and digital venture capital funds, our focus on governance, compliance, and risk management aims to reduce the burden of counter-party risk mitigation and enable you to focus on growing your businesses. 

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