Responding to the Bear Market
In a strategic move to tackle the ongoing bear market, 21Shares, a leading player in the realm of crypto exchange-traded products (ETPs), has introduced a new investment tool aimed at investors eager to dip their toes in the chilly crypto waters. Enter the 21Shares Bitcoin Core ETP (CBTC), designed specifically for those looking for affordable exposure to Bitcoin (BTC) during these tumultuous times.
About the New ETP
The CBTC made its grand entrance on the SIX Swiss Exchange this week. With a meager expense ratio of just 21 basis points, this product cleverly aligns with Bitcoin’s capped supply of 21 million. This ratio is not just a random number; it’s 44 basis points lower than the next best offering on the market. Talk about a wallet-friendly way to catch some volatile Bitcoin action!
The Crypto Winter Suite
CBTC is the star of 21Shares’ new lineup, dubbed the Crypto Winter Suite, aimed at arming investors with various options tailored for bear market conditions. Arthur Krause, the ETP product director at 21Shares, pointed out that the best moments to snag assets are often when prices are in the dumps—though that seems to be when most investors freeze up with fear.
Why It’s Needed Now
Amid the recent market panic, where Bitcoin plummeted below the $20,000 mark for the first time since 2020, 21Shares wants to help investors cling to their dreams of a brighter crypto tomorrow. Krause highlighted that the CBTC aims to facilitate easier access to Bitcoin, serving as a beacon of hope for those looking to optimize their portfolio during these unpredictable times.
Expanding Investment Opportunities
Beyond just launching the CBTC, 21Shares offers various products geared towards handling market turbulence, such as the 21Shares Short Bitcoin ETP and the 21Shares Bytetree BOLD ETP. Krause stated that the CBTC is here to stay, part of a promise to provide a comprehensive range of products that support portfolio positioning across different market conditions. Investors, rejoice!
Looking Ahead
Industry insiders were already bracing for a crypto market decline as early as 2022, with some predicting that the next Bitcoin bull run might not surface until 2024 or 2025, contingent on Bitcoin’s next halving. Still, the sentiment among some executives is optimistic; bear markets might just be the fertile ground needed for Bitcoin to sprout back to life.
“Typically, the best time to buy an asset is when prices have fallen — but that is often when investors are the most reluctant to buy,” said Krause. Sounds about right, doesn’t it?
