What is the Vontobel Bitcoin Certificate?

Various financial institutions are looking for ways to make Bitcoin investing accessible to mainstream investors. That is difficult due to [the lack of] regulatory measures. Vontobel, a Swiss institution, introduced their Bitcoin tracker certificate in July of 2016. Let’s take look at what this product is all about and how it can affect the future value of Bitcoin.

Vontobel’s Bitcoin Certificate is a Mainstream Tool

Mainstream investors will not buy cryptocurrency from an exchange or a Bitcoin ATM. Instead, they will look for OTC trading opportunities, or even use dark pools to place large orders not linked to a public order book. The one downside to doing so is how investors are directly exposed to price volatility, which is something most people prefer to avoid for obvious reasons.

Several initiatives have been launched to introduce Bitcoin to mainstream investors through traditional investment vehicles. The Bitcoin ETFs are by far the best-known examples, although none of them have a good chance to succeed right now. The SEC will likely not approve an official Bitcoin ETF. There is a huge lack of regulation, and it will take months, if not years until that situation changes.

Vontobel, a Swiss company, has tried doing things a bit differently. In July of 2016, they became the first Swiss issuer to offer a tracker certificate on Bitcoin. Any investor who this Bitcoin’s future is bullish can participate in investing through a traditional financial vehicle. Vontobel’s Bitcoin certificate is publicly traded on the SIX Swiss Exchange. The world will need more offerings like these, as there is a lot of capital waiting to venture into cryptocurrency through traditional solutions.

The Vontobel certificate on Bitcoin is denominated in US Dollar and keeps track of the Bitcoin price in USD. Investors can purchase this investment certificate to invest in Bitcoin indirectly. Not being exposed to price volatility directly and still being able to reap all of the potential profits makes the Vontobel Bitcoin certificate an intriguing investment. Every certificate is valid for two full years, which means it is a longer term investment.

Given Bitcoin’s price surge throughout late 2016 and early 2017, the Vontobel Bitcoin certificate has helped Swiss investors profit nicely. Bitcoin’s momentum is far from over, and the price may even hit $5,000 in the next year or so. The prospects of the future Bitcoin price are looking good. This also means investment opportunities such as Vontobel’s Bitcoin certificate will become more appealing to mainstream traders and investors.

At the time of writing, the VONCERT on Bitcoin was valued at $2,677, which is around $120 above the actual Bitcoin market price. It is not uncommon for these traditional investments linked to Bitcoin to include a slight premium to the global market average. In all markets, investors have to pay a premium for the convenience.

About The Author

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Sounds like a great idea. I wish banks would offer this. I would buy this through a bank! I would also lend out Bitcoin to a bank – still waiting for Local Banks to offer this service!

You can. via your broker with the xbt provider bitcoin etn
SE0007525332 and can put it in your sipp

Really in Australia ?

Check your broker if he has access to European markets, it is that simple

Banks will try to come up with a way to fractional reserve bticoin.

Not in the near future.
However i do see the need to regulate ICO ther are a disaster waiting to happen…

This seems absolutely ridiculous. I would rather invest directly. It makes sense.

You’re Trading access for a substitute of the thing you really want.

That is what certificate are there to do, to remove the problems you encounter having to go through the complex process of registrating with an crypto exchnage: here you go simply with your broker and you can even put it in your sipp!

Smart move : you buy Bitcoin in one click instead of using geek addict software/platform/hardware.
You r fylly KYC compliant,u pay all taxes on your benefits.
U do not have to care about beeing compliant because this way u r part of a fully compliant financial system.
And this open the door to BIG money.

Bad stuff for u guys : u r nothing comparing to this upcoming tsunami.
Miners do not care about your voice, as such big bitcoin companies. Now Wall Street will have a grip on crypto.
Buy bye early adopters, time 4 big players. You’re out!

But won’t people like myself who have 1 bitcoin still be ok?

There is already a certificate with long term investment ie no maturity!! The vontobel expires next year 2018! The xbt provider bitcoin etn certificate has no maturity and runs on an orderly exchange with depth of market orders! Its traded in euro and sek , so much better than this certificate. With $100m in asset its is by far the better exchange traded bitcoin product than the swiss one!!

Vontobel Bitcoin Tracker Certificate Gaining Popularity in Switzerland

A Swiss investment certificate that tracks the price of bitcoin is gaining popularity with investors. The Vontobel bitcoin certificate is one of the most-traded structured products on Switzerland’s largest stock exchange, according to a local publication.

Strong Demand for Bitcoin Tracker Certificates

The Vontobel bitcoin tracker certificate was launched in 2016 and is listed on Switzerland’s largest stock exchange, the Six Swiss Exchange. Since its launch, the firm saw “considerable demand” for the tracker certificate and subsequently raised its issue size a couple of times. On Thursday, a Swiss/German-language daily newspaper published by the NZZ Media Group, the Neue Zürcher Zeitung, reported:

The certificate is a success: On many days it is the most traded structured product on the Swiss stock exchange. The initially small issue volume of the certificate with a term of two years was quickly increased to CHF 20 million and now increased to CHF 40 million.

The product trades under the symbol ZXBTUV with bitcoin priced in USD as the underlying asset. The certificate has a two-year term. The first day of trading was on July 15, 2016, and the last day of trading will be on July 16, 2018. “Between those dates, investors will be able to trade the Vontobel certificate on the secondary market, i.e. buying or selling at the applicable bid/offer prices,” the firm explained. Roger Studer, Head of Vontobel Investment Banking, said this bitcoin certificate “will for the first time give investors a simple and transparent means of investing in bitcoins on the Six Swiss Exchange.” Redemption is in cash, equal to the price of bitcoin at the certificate’s maturity.

Attraction to Vontobel Bitcoin Tracker Certificates

Established in 1924, Swiss private bank Vontobel specializes in wealth and asset management for private clients and institutional investors. With 21 international locations, the firm also offers investment and private banking services. At the end of 2016, it held CHF 195 billion of client assets.

Citing the complexity of acquiring digital currencies, the Neue Zürcher Zeitung wrote that “there are a lot of questions to ask the potential investor such as: what crypto you should buy, should you do it directly on a stock exchange or with a broker, do you need a web wallet for the coins, and what to do with the elliptical code.”

These questions are why bitcoin tracker certificates and similar standardized investment products are welcomed by Swiss investors, the publication quoted an asset manager saying. Investors in Switzerland feel that trading bitcoins with a Swiss bank carries a significantly smaller risk, he continued, adding that “one does not have to invest on a bitcoin platform, which many asset managers consider unsafe.”

Meanwhile, two other bitcoin tracker certificates are also gaining popularity globally. Bitcoin Tracker One and Bitcoin Tracker Eur issued by XBT Provider recently announced having achieved $100 million in assets under management, due to “rapidly escalating” demand from investors. This announcement followed the two products’ listing by Britain’s largest broker, Hargreaves Lansdown.

Would you invest in Vontobel bitcoin tracker certificates? Let us know in the comments section below.

Images courtesy of Shutterstock and Vontobel

Need to calculate your bitcoin holdings? Check our tools section.

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Swiss bank to launch bitcoin futures to allow betting against cryptocurrency

ZURICH (Reuters) - Swiss bank Vontobel said it will start trading Switzerland’s first two mini futures to short bitcoin on Friday, giving investors a tool to bet against the value of the volatile cryptocurrency or to hedge bitcoin positions.

The launch of the two mini futures on the Swiss stock exchange by the country’s second-biggest provider of structured products comes after CME Group Inc, the world’s largest derivatives exchange operator, said it will launch a futures contract for bitcoin later this year.

When the value of bitcoin falls by 10 percent, the value of the more conservative of the two mini futures rises by almost 6 percent while the other gains almost 10 percent, according to the termsheets Vontobel published on Thursday.

The value of bitcoin has fluctuated wildly this month, plunging as much as 29 percent last week from its Nov. 8 record high of $7,888 and then recovering more than a third of its value in the last four days.

For the year, it is up more than 600 percent – a meteoric rise that has prompted many to warn that bitcoin has become a bubble that could be set to burst.

Mini futures are derivative instruments combining features of futures and options and tradable for considerably less than regular futures contracts.

The cryptocurrency remains a “speculative” investment that thrives because of its anonymous nature, BlackRock Inc Chief Executive Larry Fink said on Monday.

It has drawn scepticism from several senior bankers, including JP Morgan Chase & Co Chief Executive Jamie Dimon, who called bitcoin a fraud and said he would fire any traders at his bank who touched bitcoin.

However, the CEOs of Goldman Sachs Group Inc and Morgan Stanley said the cryptocurrency could be worth considering.

($1 = 0.9915 Swiss francs)

Reporting by Joshua Franklin and Oliver Hirt; Additional reporting by Jemima Kelly in LONDON; Editing by Hugh Lawson

Vontobel issues first bitcoin certificate on Swiss Exchange

Vontobel has become the first Swiss issuer to offer a tracker certificate on bitcoins for subscription. Investors who expect a positive development in the bitcoin price can now for the first time participate in this performance with a product that can be traded simply and transparently on the SIX Swiss Exchange.

The Vontobel certificate on Bitcoin in USD is a classic tracker certificate (SSPA: 1300) that offers investors a simple means of investing in bitcoin. With this investment certificate, investors in Switzerland will thus for the first time be able to participate in the development of the bitcoin price vs the USD.
The certificate has a two-year term, and an application has been submitted for admission to the SIX Swiss Exchange. This is subject to bitcoins being approved as an underlying. The first day of trading will be 15 July 2016, and the final fixing will be made on 16 July 2018. Between those dates, investors will be able to trade the Vontobel certificate on the secondary market, i.e. buying or selling at the applicable bid/offer prices.

"The new bitcoin certificate will for the first time give investors a simple and transparent means of investing in bitcoins on the SIX Swiss Exchange. Vontobel is thus once again demonstrating its capacity for innovation as one of the leading providers of structured products," said Roger Studer, Head of Vontobel Investment Banking.

- For more information, please see derinet.ch/blog.

Contacts

Legal information This document is for information purposes only and does not constitute an offer of any kind. The services described in the document are supplied under the agreement signed with the service recipient. The nature, scope and prices of services and products may vary from one country to another and may change without notice at any time. Certain services and products are not available worldwide or from all companies of Vontobel. In addition, they may be subject to legal restrictions in certain countries.

Vontobel Bitcoin Tracker Certificate Gaining Popularity in Switzerland

Strong Demand for Bitcoin Tracker Certificates

Attraction to Vontobel Bitcoin Tracker Certificates

Would you invest in Vontobel bitcoin tracker certificates? Let us know in the comments section below.

Images courtesy of Shutterstock and Vontobel

Need to calculate your bitcoin holdings? Check our tools section.

Swiss bank to launch bitcoin futures to allow betting against cryptocurrency

For the year, it is up more than 600 percent – a meteoric rise that has prompted many to warn that bitcoin has become a bubble that could be set to burst.

Mini futures are derivative instruments combining features of futures and options and tradable for considerably less than regular futures contracts.

The cryptocurrency remains a “speculative” investment that thrives because of its anonymous nature, BlackRock Inc Chief Executive Larry Fink said on Monday.

However, the CEOs of Goldman Sachs Group Inc and Morgan Stanley said the cryptocurrency could be worth considering.

($1 = 0.9915 Swiss francs)

Reporting by Joshua Franklin and Oliver Hirt; Additional reporting by Jemima Kelly in LONDON; Editing by Hugh Lawson

Bitcoin Bears Get Boost with Swiss Short Notes Offering Limited Loss Potential

Up until today, market sentiment has been all bull on the world’s most popular cryptocurrency, bitcoin. News of pending futures from Chicago by Christmas, price upticks, and all-time highs ignore bears altogether. Now from the Swiss comes a first set of bitcoin short notes designed to profit from price drops.

Bears Not Extinct

Bloomberg’s Quint reports, “New certificates could usher in more two-way price movement in what has largely been a one-way market so far,” referring to markets’ bull preference when it comes to bitcoin futures.

As has been widely reported, Chicago Merc (CME) will create a futures market for bitcoin before year’s end. However, bitcoiners are well aware that price fluctuations, though trending ever-upward, can rollercoaster to rather low-lows. And especially for the droves of newer investors bitcoin is bringing to market, cryptocurrencies are the ultimate scream machine.

Two Switzerland-based companies are offering a solution which is now live and available on Six Exchange AG. Billed as a world first, “structured products houses Vontobel AG and Leonteq Securities AG started separate products,” writes Viren Vaghela, “that allow investors to profit if the price of bitcoin tumbles.”

Limited Loss Potential

Vontobel’s Eric Blattmann stresses the company has “seen big demand for our long tracker certificate from investors interested in playing the upside potential of bitcoin,” he told Quint, “and now they have also the possibility to hedge their position or go short.”

Vontobel AG is no stranger to bitcoin. In operation since the early 20th century, back in 2016 Vontobel “became the first provider to offer Swiss and German investors tracker certificates on bitcoin, thus making the latter a ‘bankable asset,’” their website reveals. “In light of the strong demand, it is now increasing the investment volume from the original CHF 1.7 million to CHF 18 million” by spring of this year.

“The lopsided cryptocurrency investment playing field, historically slanted in favor of long positions, is about to be leveled,” Mr. Vaghela quotes University of Cambridge’s Garrick Hileman.

Mr. Vaghela details how “Leonteq’s product has a two-month maturity, while Vontobel’s is longer, but in both versions investors can exit early like regular exchange-traded instruments.”

Also known as “mini-futures,” they offer limited loss potential, essentially more options for investors as events happen. The ability to alter a position is key in speculation.

Leonteq’s Manuel Dürr noted, “The initial feedback has been extremely positive. Clients do very much appreciate the possibility of choosing between a long or a short investment in bitcoin,” he told Mr. Vaghela.

What do you think of shorting bitcoin? Tell us in the comments below!

Images courtesy of: Pixabay, Leonteq, and Vontobel.

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Thanks for this news regarding Bithumb. I have not used their exchange but the new policies such as.

Cheap fossil fuel will remain abundant, probably forever, unless markets lose interest because of.

Same Issue in Switzerland. Not a single bank is opening accounts for any company blockchain or.

Hypocrites at work, hahaha hopefully they never do understand that anybody at any place and time can.

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