At Scalable Capital you can now invest in cryptocurrencies. More precisely on ETPs that are based on Bitcoin and Co.
Clients of Scalable capitalThe largest digital asset manager in Europe, you can now participate in the price of Bitcoin, Ethereum and Co. As the company announced in a press release, the trading of the assets has already been approved. However, this does not mean investments in physical Bitcoin, but in so-called exchange-traded products (ETP). These are derivative financial products that replicate the value of cryptocurrencies. Therefore, a wallet is also not possible.
Advantage of such an approach, also for example TradeRepublic that is pursued is the simplification of the investment. Because instead of signing up for an exchange, existing clients can now add crypto currencies to their portfolio as well. Scalable Capital’s user interface is clear too.
“We make trading cryptocurrencies as easy as trading stocks or ETFs,” says Erik Podzuweit, co-founder and managing director of Scalable Capital.
ETP: nothing for Bitcoiners
For staunch crypto disciples, this form of investment is not suitable at the moment. After all, the ETP structure explicitly precludes taking custody of the coins into your own hands. For Bitcoiner, however, this possibility is at the core of the value proposition, but a solution is already in the works.
“It is important for us to make cryptocurrency trading as easy as trading stocks or ETFs. In return, we offer people who want to invest in this asset class easy and safe trading through regulated stock exchanges. The crypto-securities are stored in the custody account of the users and the coins are secured with a regulated custodian. In principle, the coins can be paid for in your own wallet, we are currently working with our partner on a convenient solution for this, ”Erik Podzuweit, co-founder and managing director of Scalable Capital, told BTC-ECHO.
The project is in collaboration with CoinShares has been launched, Europe’s largest digital asset investment firm. So far, CoinShares has ETP for four cryptocurrencies on offer: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and XRP; These four should also be tradable on Scalable Capital.
According to the founder of the company, Podzu, the reason for the integration of cryptocurrencies in the range of assets of the broker was the increasing demand from younger customers.