Categories: EducationFAQ

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.

Related Post

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.

JP Buntinx

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.

Share
Published by
JP Buntinx

Recent Posts

Best Altcoins to Invest in Today: Qubetics Sets the Stage for Blockchain’s Future as Bitcoin Hits $108K and Litecoin Soars

The cryptocurrency world has always been a hotbed of innovation, attracting both seasoned investors and…

11 hours ago

Dogecoin Millionaire Predicts This Undervalued Altcoin Could Match DOGE’s 2021 Gains

Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…

11 hours ago

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

12 hours ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

12 hours ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

16 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

17 hours ago