FiCAS, a Swiss crypto asset investment firm, launched Bitcoin Capital Active ETP (BTCA) on the SIX exchange this week, marking the first actively managed exchange-traded crypto product of its kind. Th
FiCAS, a Swiss crypto asset investment firm, launched Bitcoin Capital Active ETP (BTCA) on the SIX exchange this week, marking the first actively managed exchange-traded crypto product of its kind. The product holds Bitcoin alongside the market's 15 largest altcoins.
The firm's founder, Ali Mizani Oskui, has built a notable track record in crypto trading since 2013. Between 2015 and 2018, his fund outperformed Bitcoin by 110%. When Bitcoin peaked in the fourth quarter of 2017, Mizani switched to a cash position and posted returns of over 90 times.
"Based on our in-depth trading and analytical experience, actively managing our underlyings allows us to preempt and react to market movements through the discretionary buying and selling of crypto assets to steer risk-adjusted return," Mizani said in a statement.
FiCAS employs technical and fundamental analysis, proprietary algorithms, quantitative signals, and the team's trading experience. The firm charges a 2% management fee, above WisdomTree's Bitcoin ETP at 0.95%.
FiCAS Chairman Dr Mattia Rattaggi pointed to the environment driving interest in the product. Investors facing record-low interest rates are hunting for alternative assets. The BTCA automates its management while implementing a lower-risk approach than traditional passive strategies.
Rattaggi sees a role for discretionary management in crypto markets. "Time will tell how this innovation will impact the industry," he said. "Arguably, an actively managed, discretionary ETP may be better suited for the still nascent cryptocurrency markets, because it focuses on active risk management more than in a systematically-driven passive ETP."
Crypto investment has drawn skepticism because of the sector's lack of regulation, volatility, and relative newness. That's beginning to shift in Europe, where several countries are introducing formal crypto and blockchain regulations. The regulatory framework could attract a surge of new investors.
