08.19.2022

HANetf Expands White Label Crypto ETC and ETP Capabilities

08.19.2022
ETFs to Increasingly Replace Futures
  • Europe’s first full service white label ETF issuer is building on its existing white label ETP capabilities to provide state-of-the-art crypto ETP capabilities
  • The new platform will offer asset managers the ability to launch all manner of crypto ETCs from physically backed, synthetic, leveraged, options strategies and index products in a cost- and time-efficient manner
  • HANetf believes the company’s deep expertise in ETP innovation means it can create an industrial scale platform for crypto ETPs 1.0, 2.0, and beyond
  • HANetf will also offer other ETPs in asset classes such as bonds, equities, commodities, and currencies in the ETC wrapper

HANetf, Europe’s first full services ‘white label’ UCITS ETF issuer, plans to extend its white label product platform capabilities to cryptocurrency ETCs. To date, the firm has focused on UCITS ETFs and physically backed gold and carbon ETCs. The current platform has around 20 clients and over 40 ETFs and ETPs.

HANetf currently distributes the single coin crypto ETC range on behalf of ETC Group which are among the most liquid available in Europe. HANetf’s new ETP product platform will enable the manufacture and management of crypto ETCs within the HANetf platform. In the same way HANetf has multiple clients for UCITS ETFs, the firm expects to have a similar model for crypto ETPs as the industry develops over time.

The offering aims to build on the market leading white label position developed alongside our multiple UCITS clients, commodity ETP clients, and ETC Group’s crypto ETCs, and to build out the range and expertise to provide one of the most comprehensive offerings globally.

HANetf intends to continue working closely with ETC Group to expand their offering and expects products from new clients to enhance the crypto offering available on the HANetf platform. The objective will be to provide the most extensive crypto ETP platform available in Europe and beyond.

At HANetf, we believe the cryptocurrency market is still in its infancy, with millennials and the younger generation still being “big believers”. While much attention is focused on the fall in the cryptocurrency market cap from $3 trillion at the end of 2021 to under $1 trillion today, that stood at $57 billion just five years ago, suggesting the long-term trend of the asset class is still one of growth.[1] We believe crypto is an asset class which will continue to develop, grow, and become more mainstream over time.

The new ETP platform will allow clients to choose between a “full service” model, or a more basic model which may be of interest to managers with existing distribution networks or particular target markets in mind. Crucially, it will be fully integrated with HANetf’s existing UCITS platform, benefitting from a deep ecosystem of 60+ distribution networks, 28 liquidity providers, and a pan-European reach accumulated over the past four years. HANetf’s ETC clients will have full access to this from day one, reducing their effective launch timeline to only a couple of months and a shared cost model versus a full cost model of setting up a proprietary platform.

Over the past year, HANetf has received 53 enquiries regarding the creation of new crypto related ETCs and such enquiries continue despite market volatility. HANetf believes that, with the current pull back in the market, now is the time for asset managers to invest and benefit from recoveries in the asset class.

HANetf continues to expand its ETC and cryptocurrency product team with Torsten Dueing joining HANetf as Head of ETC Structuring earlier in 2022. Torsten oversees the development and growth of our existing ETC products which include commodities and carbon offsets.

Torsten joins Owen Rees on the ETC Product Development team. Owen joined HANetf in September 2021 from IHS Markit (S&P), where he was global co-head of EBS (ETFs & Benchmark Solutions), and is best known as a member of the team that launched Europe’s first gold-backed Exchange Traded Fund and the GLD, the World’s Largest Gold backed ETF in the USA.

Nik Bienkowski, co-CEO and co-Founder HANetf comments:

“At HANetf we have been at the forefront of innovative new ETP launches. Among our extensive range of thematic funds are several firsts, such as Europe’s first Metaverse, space economy, and medical cannabis UCITS ETFs. However, we have also carved out a space in the world of cryptocurrency and commodity ETCs. Given our history of creating the world’s first gold ETC, commodity, and currency ETCs, it’s a natural extension of our offering to expand into providing white label ETC and ETP solutions. We want to be a one-stop-shop across all asset classes and product structures!

“Our new crypto ETC platform continues in this vein. It is clear to us that many, despite the recent sell-off, view cryptocurrencies as playing a vital role in our digital future. For the investor trying to gain exposure to cryptocurrencies, we believe there is no doubt that the ETC wrapper is one of the best ways to do so. With this new platform we will be able to provide innovative new ETCs to the European market.

“We also believe many mainstream asset managers and product providers like investment banks have regulatory, operational, and infrastructure challenges with crypto and an outsourced solution via HANetf makes a lot of sense.”

Source: HANetf

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