XBT Provider, the issuer of Europe’s only bitcoin-based exchange-traded notes (ETNs), announced Thursday that its assets under management (AUM) have doubled from $50 million to $100 million in just 45 days, driven by “rapidly escalating” demand from both retail and institutional investors. At the same time, the Swedish-domiciled company revealed a custodial partnership with Xapo, a leading Bitcoin wallet and custody provider.
Unprecedented Demand from Institutional Investors
Jean-Marie Mognetti, Head of Trading and Operations at XBT Provider, commented: “In the last 60 days, XBT Provider’s exchange traded bitcoin note has experienced unprecedented volume in trading and demand from both retail and institutional investors searching for exposure to bitcoin. This trend has quickly doubled assets under management to over the $100 million threshold.”
The surge follows Bitcoin.com’s earlier report that Britain’s largest broker, Hargreaves Lansdown, began offering XBT Provider’s products to its 876,000 clients. Additionally, Goldman Sachs recently started covering bitcoin due to popular demand from its hedge fund clients, further signaling growing institutional interest.
XBT Provider currently offers two bitcoin ETNs: Bitcoin Tracker One (denominated in Swedish krona) and Bitcoin Tracker Eur (denominated in euro). Both are listed on the Nasdaq OMX exchange in Stockholm and available in 179 countries. They are designed to mirror the return of bitcoin.
Partnership with Xapo Enhances Security
As part of Thursday’s announcement, XBT Provider also revealed a custodial partnership with Xapo. Bitcoins held in cold storage on behalf of investors in the two ETNs will now be secured by Xapo. The Zug-based company received conditional approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate in Switzerland in January.
Ryan Radloff, Head of Investor Relations at XBT Provider, stated: “The addition of Xapo to our infrastructure is a critical step in ensuring that our products remain the most professional bitcoin investment products available to investors, globally.” Xapo is also the custodian of Barry Silbert’s Bitcoin Investment Trust (GBTC), which is currently seeking SEC approval to convert into a Bitcoin ETF.