Institutional Demand Supports Crypto as Bitwise marks five-year anniversary of listing its first European product

Bitwise today celebrates the five-year anniversary of its first European product: the Bitwise Physical Bitcoin ETP (BTCE), the world's first-ever centrally cleared Bitcoin ETP. The listing on 18 June 2020 marked Bitwise's debut in European markets and became a catalyst for a wave of listings of crypto products on Xetra, Europe's largest ETF trading venue.

Bradley Duke, Head of Europe at Bitwise, said: “Reaching the five-year mark is not just a milestone, it is also a point of reflection on our long-term vision and commitment to building transparent, reliable, and secure access to digital asset investments for European investors. Bitwise is 100% focused on crypto, but many of our experts come from traditional finance, putting us in a unique position to accompany investors on their journey into this new and unique investment class. We thank the pioneering investors and partners who believed in this asset class early on, and we look forward to continuing to serve the evolving needs of the market.”

Stephan Kraus, Head of ETF & ETP at Deutsche Boerse, said: “We congratulate Bitwise on the fifth anniversary of its Bitcoin ETP on Xetra. The listing of this pioneering product marked the start of our segment for crypto ETNs and was an important step towards giving investors access to the performance of cryptocurrencies in a regulated market environment. It was also the first centrally-cleared product of its kind in the world. As the largest trading venue for crypto ETNs in Europe, we greatly appreciate the partnership with Bitwise, and look forward to continued collaboration.”

A market benchmark for product design and transparency

BTCE is now one of Europe's largest physically backed Bitcoin ETPs by assets under management and the most actively traded. Its structure - featuring full physical backing, physical redemption option, and a strict no-lending policy - has set a new standard for crypto ETP design and reflects the priorities of investors who demanded greater transparency from the outset. Bitwise is grateful to the early adopters who set high expectations and helped raise the standard across the industry.

Transparency remains central to Bitwise's approach. Weekly balance reports are published by an independent administrator, and the blockchain addresses of Bitwise's primary BTC and ETH product custody wallets are publicly disclosed, enabling any investor to verify collateral levels independently. To further reduce operational risk, Bitwise pioneered a safeguard mechanism requiring all crypto and securities asset movements to be approved by an independent transaction administrator, who holds a legally enforceable veto right embedded in the Bitwise ETP structure.

Bitwise's management company is ISO/IEC 27001:2017 certified, reflecting its commitment to operational integrity. With no proprietary trading, Bitwise remains fully aligned with client interests.

As cryptoassets become an accepted component of diversified portfolios, Bitwise continues to support investors with practical tools and evidence-based insights. Internal analysis shows that adding a 5% allocation to Bitcoin within a traditional 60/40 portfolio between 2014 and 2025 would have increased average annual returns from 6.2% to 10.6%, with limited impact on volatility, drawdowns, or risk-adjusted returns.

Today, more than 250 crypto ETPs are listed across XETRA and other leading European exchanges. Bitwise's offering has grown in tandem with investor demand, expanding beyond single asset strategies such as Bitcoin, Ethereum, and Solana to include diversified crypto baskets and index-based staking ETPs.

Bitwise products are designed to integrate seamlessly into professional portfolios, offering exposure to cryptoassets through regulated vehicles- without the operational risks of holding a physical wallet. They are also accessible to individual investors via leading brokerage platforms, with features such as physical redemption included as standard.

Fundamental trends supporting the demand for crypto assets

Bitwise believes that a number of fundamental trends may support the value of crypto assets over the long term. In portfolio context, digital assets can be deployed as effective hedge against inflation that is not as susceptible to fiscal or global trade political agendas as traditional currencies. Crypto is more widely accepted by Gen Z investors, who are about to benefit from a wealth transfer from some of the richest generations that ever existed. Many coins have use cases that are independent of their use as a currency. And finally, crypto assets are a welcome solution for the unbanked or underbanked, particularly in parts of the world that are politically unstable. With crypto, access to a smartphone and the internet is enough to make payments.

Bitwise is continuing to launch innovative new products regularly, such as the Bitwise Diaman Bitcoin & Gold ETP launched in March. Bitwise ETPs can be seamlessly integrated into standard brokerage or ETF portfolio accounts and are often eligible for SIPP and ISA inclusion, making them accessible for long-term investment planning in the UK.

Resources:

Dedicated website for the 5 year anniversary of BTCE

Important Information

This publication constitutes a marketing communication and is provided for informational purposes only. It does not constitute investment advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instrument.

This document (which may take the form of a presentation, press release, social media post, blog article, broadcast communication or similar instrument – collectively referred to as a “Document”) is issued by Bitwise Europe GmbH (“BEU” or the “Issuer”) and has been prepared in accordance with applicable laws and regulations, including those relating to financial promotions.

Bitwise Europe GmbH, incorporated under the laws of Germany, is the issuer of the Exchange Traded Products (“ETPs”) referenced in this Document under a base prospectus and the applicable final terms, as supplemented from time to time, approved by the German Federal Financial Supervisory Authority (BaFin). The approval of the prospectus by BaFin relates solely to the completeness, coherence and comprehensibility of the prospectus in accordance with the Prospectus Regulation and does not constitute an endorsement, recommendation or assessment of the merits of the products.

The market analyses, views and scenarios presented reflect the assessment as of the date of publication and are based on information considered reliable. However, no representation or warranty is made as to their accuracy or completeness. Forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Past performance is not a reliable indicator of future results.

Capital at risk. Cryptoassets are highly volatile and involve a high degree of risk. The value of investments in cryptoassets and crypto-linked ETPs may fluctuate significantly, and investors may lose part or all of their invested capital. No capital protection or guaranteed compensation mechanism applies in respect of market losses.

Any investment decision should be made solely on the basis of the relevant base prospectus, the applicable final terms and the key information document, in particular the section entitled “Risk Warning”. The base prospectus, final terms and additional risk information are available at: www.bitwiseinvestments.eu

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