8 min readAs you embark on your journey into the world of cryptocurrency investment, the path ahead is full of opportunities. Throughout this Beginner’s Guide, we've delved into the fundamentals of crypto investment, reasons to believe in digital assets for the long run, dissected the intricacies of crypto ETPs, and examined the keys to building a resilient portfolio. Now that you're ready to dive into crypto, it's time to reflect on everything you've learned, from the advantages of Exchange-Traded Products for digital assets in a logic of diversification all the way to choosing the right CoinShares product for you.
Why choose crypto ETPs?
In a landscape characterised by volatility and uncertainty, Exchange Traded Products (ETPs) have emerged as beacons of stability and accessibility for investors seeking exposure to the ever-evolving cryptocurrency market. These innovative, yet decades old, widely adopted traditional financial instruments offer a seamless gateway into the world of crypto, allowing investors to diversify their portfolios and capitalise on the potential upside of digital assets without the complexities of direct ownership and the inherent risks of crypto exchanges. All you need is a brokerage account on your preferred investment platform: the crypto ETP of your choice integrates in your existing portfolio, allowing for easier monitoring and rebalancing.
Selecting the right ETP for you
When it comes to selecting Exchange Traded Product(s) (ETPs) for your investment journey, there are as many possibilities as there are strategic objectives and risk appetites for your portfolio. Whether you're drawn to the allure of individual assets or the diversity of indexes, there's a world of opportunity waiting for you. From the thrill of investing in single assets like Bitcoin or Ethereum to the variety and specific exposure offered by crypto indexes ETPs, the choice is yours to make.
And hey, while crypto investment can become very tempting at times, remind yourself that there’s no need to go all in. Just a 4% allocation to Bitcoin in your portfolio can already make a significant impact.
CoinShares: guiding your investment journey with a comprehensive offering
Amidst the various options available in the crypto ETP space, CoinShares stands as a beacon of trust and reliability, offering a comprehensive suite of ETPs designed to meet the diverse needs of investors. With a legacy of excellence spanning over a decade in Europe and growing activities in the U.S. with the secured acquisition of Valkyrie, CoinShares has earned a reputation for innovation, transparency, and investor-centricity, making it the preferred choice for discerning investors seeking regulated exposure to digital assets.
CoinShares' ETP suite comprises two main families: XBT Provider, for the Nordics, and CoinShares Physical in continental Europe. Each family offers distinct advantages tailored to meet investor needs.
XBT Provider: Nordic's Premier Crypto ETP
XBT Provider, a trailblazer in the crypto ETP space launched in 2015, offers synthetic ETPs designed to mirror the performance of cryptocurrencies like Bitcoin and Ethereum. Regulated by the Swedish Financial Supervisory Authority (SFSA) and available to trade in both SEK and EUR, XBT Provider ETPs provide investors with exposure to crypto assets without the complexities of self-custody. With a robust structure and competitive management fees, XBT Provider ETPs have garnered widespread popularity among Nordic investors, managing significant AUM and boasting a track record of success. Last but not least, XBT Provider ETPs integrate seamlessly into Investeringssparkonto (ISK) savings accounts.
CoinShares Physical: Building Strong Foundations
CoinShares Physical ETPs, introduced in 2021, represent a paradigm shift in crypto investing by offering 100% physically backed products. These ETPs, listed across Europe, provide investors with direct exposure to cryptocurrencies while ensuring asset segregation and investor protection. With innovative features such as built-in staking rewards, management fees reduced to 0.00% p.a. and diversified offerings, CoinShares Physical ETPs cater to the evolving needs of European investors seeking secure and transparent crypto investments.
Access CoinShares ETPs right through your broker
To gain exposure through the ETPs listed above, simply initiate your search using the product names or their unique ISIN numbers to seamlessly integrate these innovative investment solutions into your portfolio. The minimum to invest in CoinShares ETPs may vary depending on brokers policy, but it is generally around 1 share of the chosen ETP.
Considerations for Investors Navigating the Crypto Landscape
As you navigate the intricate terrain of crypto investment, equipping yourself with the knowledge and tools needed to make informed decisions is paramount. Whether you're a seasoned investor or just dipping your toes into the world of crypto, understanding the nuances of ETPs and the key considerations for portfolio construction will empower you on your investment journey.When selecting an ETP, investors must consider various factors, including structure, fees, and regulatory compliance. CoinShares ETPs prioritise transparency, investor protection, and regulatory adherence, ensuring that investors can confidently participate in the crypto market while mitigating risks. With a comprehensive range of ETPs, backed by years of expertise and a dedication to investor protection, CoinShares stands as a trusted partner for investors navigating the dynamic landscape of digital asset investments.
Explore CoinShares' diverse range of ETPs and discover how you can unlock the potential of crypto investments with Europe's leading alternative asset manager.
Any doubts or remaining questions? Don't hesitate to consult the other articles of this Beginners' guide or reach us on Twitter or LinkedIn. We're here to support you every step of the way on your crypto investment journey.
Key Risks
As with any asset class, buying and holding crypto ETPs involves risks which investors should take into consideration before adding these products to their portfolios.
Investors’ capital is at risk, and holders may lose part or all of their money due to price fluctuations of the underlying asset. For instance, bitcoin has experienced several bear markets, most recently in 2022.
Crypto ETPs are generally structured as debt securities. This exposes the holder to credit risk (the issuer could default on its obligations)
The bid/ask prices of ETPs trading on an exchange likely differ from the price of the underlying crypto. The difference between the bid (the broker’s purchase price) and the ask (its sell price) is referred to as the ‘spread’.
Finally, past performance isn’t an indicator of future returns. Investors should always seek professional advice to ensure a crypto allocation fits with their overall goals and objectives.
