We’re witnessing unprecedented crypto trading activity with whales started moving their BTC to exchanges and cashing out as soon as the price hit $19,000. Despite the bitcoin’s narrow miss of hitting $20,000, the world’s-best cryptocurrency is showing no signs of slowing down, continuing on its track to the all-time high of $19,783 posted in a December 2017 rally that saw the values of several cryptocurrencies surge
Market analysts see this level of confidence remaining as various factors contribute to this trend: The development of three effective COVID-19 vaccines, the registration of low interest rates as part of the Federal Reserve’s policy, and the acceleration of the transfer of power between the Trump administration and President-elect Biden have all been driving factors in crypto adoption and price growth.
After bitcoin grew by nearly 80% in the last two months, the king of digital currencies has once again come to the attention of the top media around the world. In fact, bitcoin’s growth has been so unprecedented that even traditional financial institutions and media sources around the world are increasingly adopting or running stories about it. Reuters, The Wall Street Journal, Forbes and the likes have all shifted their focus towards coverage of the crypto phenomenon.
Meanwhile, Altcoins saw their value pull up thanks to BTC’s uptrend and achieved significant growth. ETH, XRP, IOTA, LTC and ADA have all been able to bring profits to traders and investors.
In recent weeks, with the rise of bitcoin, many experts and traders have talked about the future of crypto. Even major companies like PayPal have entered the world of cryptocurrencies and invested in digital currencies to prove that a bright future for this popular digital currency is possible.
Switzerland is leading the way in bridging traditional financial products and crypto
As cryptocurrency trading matures, an increasing number of financial products integrating cryptocurrencies are becoming available for investors interested in getting exposure to digital assets. In most cases, many of these mechanisms are iterations of financial concepts that have been around in traditional finance for many years. Investors are able to diversify portfolios and create sophisticated strategies by expanding outside of conventional spot trading. By buying these financial products, investors can easily enter the world of digital currencies and leave the management of their assets to the providers of these financial products with reduced risk.
The Swiss city of Zug, now known as Cryptovalley, is often regarded as the cradle of digital currencies and digital currency-related financial products. The country has been able to be one of the pioneers in this field with its unique laws about crypto-related businesses and attractive tax system in this field.
Digital currencies as an Alternative Investment in the near future
Experienced investors know that diversification in their personal portfolio can increase long-term returns while also controlling and managing investment risk. Cryptocurrencies are one of the most important asset classes that have shown the potential for profitability over investment risk. In the meantime, financial products, including ETPs, can be considered one of the best ways to enter the world of cryptocurrencies.
By investing in these financial products, various investors can hand over the management of their digital assets to experts in this field without the need to deal directly with high-risk cryptocurrency markets. It is hoped that with the wider regulation of this valuable product, we will see many investors willing to buy and use it as an alternative investment.
ETPs, The Most Popular Financial Products
ETPs (Exchange Tradable Products) are one of the most innovative financial products that have been able to attract the attention of many people interested in the world of digital currencies these days. ETPs are products that can be traded on the exchange platforms, so their price and value may fluctuate depending on market conditions.
Active Management and Passive Management
As investor interest increases in ETPs, Actively Managed Crypto Investment services are in demand. Many people don’t have the technical knowledge of blockchain to understand how cryptocurrencies work.
There are two legally approved products for retail investors to enter the crypto market: Passive and Active ETPs. A passive ETP performance is equal to a single asset or a selection of crypto assets that follows simple rules like cap weighted or equal weighted.
The goal of active management is to outperform the market. This requires a team of portfolio managers to actively observe market trends and forecast fundamental changes that may impact the market, such as shifts in political or economic outlook. Active management also takes advantage of the best time to enter and exit investments. For this to be a winning strategy, experience on the side of fund managers and risk taking on the side of investors, is a necessity.
Using a service like FiCAS – a Swiss-based investment company that offers investors the possibility to diversify their portfolios in the new crypto asset class – is one way to enter the dynamic but volatile crypto market with a managed risk.
In recent days, due to bitcoin fluctuations, the ETP of FiCAS AG was able to grow significantly and earn 7% profit for its investors. FICAS ETP, which is actively managed, was able to earn this amount of profit in less than 48 hours by trading bitcoin against the top 15 altcoins on the market. At the same time, Bitcoin has not been able to make such a profit (with the hold strategy).
As the world’s first actively managed crypto ETP, FiCAS has succeeded in bringing to the market an exceptional investment vehicle, for investors seeking the diversification in crypto assets and the associated potential substantial returns. This product stands out from an operational, infrastructure, risk management, liquidity and accessibility perspective.
Bitcoin Capital Active ETP (BTCA) can now be bought by retail and institutional investors through their bank or broker as easily as buying shares.
FiCAS offers access to a unique trading strategy, which outperformed Bitcoin by over 100% during 2015-18 and returned more than 90x in USD-equivalent (proofed by one of top 4 global auditors).
The ETP product of FiCAS AG is a suitable product with a bright future in several ways, including being Actively Managed, the ability to get Cash Position in an instant, the possibility of free use of Altcoins (Top 15 Altcoins in the table) and the possibility of capital outflow and liquidation at the moment, which in addition to creating the possibility of capital increase, will greatly eliminate the risk of market collapse and fall.
The main goal of FiCAS ETP is to be able to increase the Net asset value in this product by trading between bitcoin and altcoins. FiCAS uses methods such as Fundamental & Technical analysis, proprietary trading algorithms, quantitative analysis, investment risk management along with many years of experience of its experts to manage and develop this valuable product.
This amount of profit is derived from bitcoin trading against some important altcoins such as LTC, EOS, XLM, XTZ, BCH and ETH.
Ultimately, offering a legal and financially secure process to realize the full potential of crypto assets for investors who want exposure to the booming market.
SOURCE FiCAS AG
