The new certificates attract a management fee of 3.75% p.a to enable Vontobel to fulfill the high capital requirements in the crypto space. Furthermore, the certificates have a subscription ratio of 1:100 to help first-time investors with limited capital to participate in the digital currency market. Vontobel has also incorporated a clause in the current certificate where the risk of a possible cyberattack and loss of the Bitcoins will be on investors.
First Swiss firm to launch Bitcoin tracker certificate
In 2016, Vontobel became the first Swiss financial institution to roll out a Bitcoin tracker certificate, which has been largely successful. The certificates allowed investors to take part in Bitcoin’s market on The Swiss Stock Exchange (SIX). The termination of the existing tracker certificates is in line with regulatory requirements agreed during the rollout. The redemption amount per certificate will be based on the issuance conditions, with a payout slated on March 19, 2021. The certificates come when more investors are showing interest in the cryptocurrency sector amid the ongoing Bitcoin rally. The asset has surged since Q4 2020 to hit a new price high of above $41,000 on January 8, 2021, in a rally attributed to institutional investors. Vontobel seeks to tap retail investors who do not want to miss out on the current rally.
