The cryptocurrency landscape has seen an exponential growth in the past decade being rapidly evolving, and has brought both challenges and opportunities.
Switzerland’s combination of favorable economy, regulatory clarity, government support, advanced infrastructure, high quality of life and technology favorable environment has positioned it as a global hub for blockchain innovations and for the crypto space.
Why Ficas stands out and the inspiration behind the first actively managed crypto ETP launch
FiCAS AG, recognized as the world’s first issuer of an actively managed crypto Exchange-Traded Product (ETP), revolutionizes cryptocurrency investment by simplifying the process.
This allows investors to use their existing bank and brokerage accounts while relying on a team of experts to manage their portfolios.
In 2019, Marcel Niederberger, the CEO, joined FiCAS and played a pivotal role in launching the world’s first actively managed crypto ETP in July 2020, setting a new standard in the industry.
This innovative approach eliminates the need for deep technical knowledge or constant crypto market monitoring, bridging the gap between traditional finance and the digital asset world.
“We wanted to create a product that made investing in cryptocurrencies easier and safer”
Many people, be it individual or institutional investors, are interested in cryptocurrencies but are hesitant to invest due to the market’s complexity and volatility.
For example, despite the potential for high returns, the rapid price fluctuations of Bitcoin and Ethereum can be intimidating.
Additionally, the lack of clear regulatory guidelines in some regions creates uncertainty, making investors wary and even with the rise of stablecoins and DeFi platforms offering promising returns, the technical knowledge required to navigate these investments can be a barrier.
This hesitation underscores the need for professional management and simplified investment solutions in the crypto space.
The motivation behind entering crypto space
“Over the past decade, we all have witnessed many impressive technological advancements, transforming our daily lives with innovations like smartphones, 5G internet and AI”
Usually, traditional banking processes, like bank transfers, are slow and costly, often requiring 24-48 hours and incurring high fees, and they lack the decentralization benefits of cryptocurrencies.
“In 2016, I discovered Bitcoin through my computer science friends and immediately recognized its potential to revolutionize the financial industry globally by challenging traditional banks and central banks”
This revelation motivated Marcel to enter the cryptocurrency space, seeing a tremendous opportunity to innovate and improve financial systems.
In fact, cryptocurrencies offer a compelling solution to these issues by enabling faster, cheaper, and more efficient transactions.
Key achievements in the Swiss Crypto Space
“In 2016, my journey began with opening one of the first crypto hardware wallet online shops called Crypto Guard in Switzerland, making secure cryptocurrency storage more accessible”
Building on his experience, Marcel became a managing partner at Decom Switzerland in 2018, where he pioneered the use of cryptocurrency as starting capital for new company registrations.
His services and regulatory guidance facilitated the registration of many new companies in Switzerland, leading to his meeting with Ali Mizani, the founder of FiCAS.
With no established process, he meticulously worked through extensive paperwork and collaborated with one of the Big Four auditors to bring this innovation to fruition.
Initially recognizing the potential in crypto structured products, he now observes their mainstream adoption, with the number of crypto ETPs growing from 17 at the end of 2020 to over 140 by June 2024.
Under Marcel’s leadership, FiCAS AG has reached significant milestones, celebrating its second anniversary with him as CEO during this time he has overseen a trading volume of $250 million, firmly establishing FiCAS AG as a leading player in the crypto ETP market.
What measures are in place to protect investors in the ETP and ETI?
“Our goal is to outperform benchmarks by proactively monitoring and mitigating market volatility”
At Ficas, investor protection is the top priority, therefore the portfolio managers actively manage Exchange-Traded Products (ETPs) and Exchange-Traded Instruments (ETIs), strategically building cash positions or shorting the market during downturns to safeguard investors.
Moreover, these financial products are fully collateralized and secured through a collateral agent, ensuring assets are backed 1:1 which means that even in the event of issuer or asset manager bankruptcy, the assets remain entirely covered, providing robust security and peace of mind for clients.
Are there any new technologies or innovations that you are looking to integrate into your offerings, such as AI, for example?
Marcel believes that Artificial Intelligence (AI) has immense potential and is rapidly being adopted across various industries, including crypto.
According to a report from Grayscale decentralized AI has the potential to make AI investment more accessible, breaking the dominance of venture capitalists and accredited investors.
While billions were invested in AI startups and private companies in 2022 and 2023, most people couldn’t participate in these opportunities.
In contrast, AI-focused crypto assets are available to everyone, allowing broader participation in the AI sector and the AI-crypto market, though still maturing, has already delivered strong returns in 2024, outperforming most other crypto sectors.
He notes that there are already protocols within the crypto space that are developing AI solutions and decentralizing them, such as platforms where individuals can host an AI GPU, similar to an Airbnb for AI.
“For me and the company I am leading, an asset management firm, AI offers opportunities and threads. While AI or AI agents can make asset allocation decisions for us and many see it as a promising concept, it still requires more time to mature”
In fact, it was noted that there has been significant client interest in a crypto basket that includes AI-related projects.
Therefore, by incorporating AI into their offerings, the crypto asset management company seeks to improve investment management efficiency and leverage emerging trends.
This commitment to innovation places it at the forefront of the crypto industry, as evidenced by the creation of the CCCC ETP, which integrates AI and Web3 technologies, as this groundbreaking product adopts a long-only investment strategy, concentrating on carefully researched crypto assets.
How do you think crypto will impact traditional financial systems?
“In the short term, cryptocurrencies are not likely to replace the traditional banking system. However, the competition is growing, and we are already seeing banks integrating crypto into their offerings”
In 2018, it was nearly impossible for a crypto company to open a bank account. However, today, thanks to advancements in technology and according to FINMA, 34 Swiss banks and trustees now offer their own crypto services and actively promote them.
One important aspect to value is that FiCAS as the crypto asset management firm, and Bitcoin Capital, the product issuer, plan to expand their range of actively managed products and single token ETPs.
Although investors now have more access to the crypto market, they often lack the expertise to time their investments effectively, therefore FICAS’s managed products bridge this gap by providing professional management, making it easier for investors to benefit from crypto opportunities and the goal is for both individual and institutional investors to increasingly turn to FiCAS’s ETPs for secure and profitable exposure to digital assets.
Under Marcel’s leadership and vibrant spirit, the FiCAS team expertly navigates the crypto market’s volatility by minimizing potential losses during downturns.
They achieved this by leveraging their deep expertise to identify and capitalize on the best investment opportunities at the right moments, positioning FiCAS to effectively manage market fluctuations and maximize returns for their investors.
Carina Schuster is a multilingual tech and science editor for The London Financial & a podcast anchor and producer for SciTech Suisse, covering groundbreaking stories in the matter of disruptive technology developments and interviewing top experts in AI, the Metaverse, Web3, Blockchain and scientific research. Throughout her experience as a journalist in the editorial and digital worlds, she was selected by CNN Money Switzerland in 2020 as a digital producer intern and has demonstrated a collaborative and creative spirit, working alongside talented journalists and delivering impactful stories with the main aim of simplifying the complexity of technology.