In 2017, Vontobel the world’s first issuer to launch a tracker certificate on Bitcoin. However, the world of cryptocurrencies has changed over time. Many new names have emerged. That is why we are pleased to present a new, diversified product that lets you participate in the performance of five cryptocurrencies.
Bitcoin has made headlines again. The world’s best-known cryptocurrency has gained around 20% since the year began. An impressive performance, seeing how the year is still so young. But that is far from the only reason why Bitcoin is edging back into the spotlight. This May will witness the third “halving”; i.e., the reward that miners receive for maintaining the network will shrink. The Bitcoin price spiked after the first two halvings. However, there is no guarantee that it will skyrocket after the third halving this year. After all, past performance is not indicative of future results. However, attractive opportunities may arise for investors nonetheless.
Tracker certificates on cryptocurrencies give investors ready access to a relatively new asset class. While Vontobel, a pioneer in the field, has been tracking Bitcoin with a certificate since 2017, its offering has expanded over time to include additional cryptocurrencies. It made this move as new currencies emerged and gained market share – and thus liquidity. As the following chart shows, Bitcoin was the undisputed champion only a few years ago, occupying over 90% of the market. Today, it holds only 65% of the market, followed by Ether (8.5%) and Ripple (4.8%) in the number two and three spots.
If you expect the largest cryptocurrencies to appreciate but do not want to invest in a specific one, you might be interested in our new tracker certificate on a crypto basket. At initial fixing, the basket contains 20% allocations of Bitcoin, Bitcoin Cash, Ether, Ripple and Litecoin. The certificate does not have a fixed duration. The product is traded in US dollars and listed on the SIX Structured Products Exchange. Investors bear the issuer risk and the underlying asset risk.
Do you want to learn more about cryptocurrencies and the risks they entail? Or would you rather invest in a certain cryptocurrency (with leverage)? Then visit Vontobel’s Cryptoworld! You can get a high-level view of all the products and download Crypto Research Reports free of charge.