CoinShares Launches Ethereum-based Exchange Traded Product (ETP)
Digital-asset investment firm CoinShares has launched an Ethereum based exchange-traded product (ETP). This will be the second ETP to be released by the firm following the launch of its Bitcoin ETP in January.
Ethereum ETP Listed on Swiss SIX Exchange
According to a press release from CoinShares, the Ethereum ETP will be listed on the Swiss SIX exchange under the ticker “ETHE.” Also, ETHE will launch with $75 million worth of assets and offer investors regulated access to Ethereum.
The investment firm also stated that each ETHE would be initially backed by 0.03 ETH while the product has a base fee of 1.25%. Townsend Lansing, head of product at CoinShares, believes that it is a significant plus. “Bringing innovative products like ETHE allows us to continue setting the industry standard for trust and transparency and provide institutions with easy access to industry-leading (sic) crypto investment vehicles,” he stated.
An ETP is a priced security that can be traded on national stock exchanges as part of day trading. ETPs track the price of assets such as commodities, currencies, stocks, or bonds. In ETHE’s case, the underlying asset is Ethereum.
The past 12 months have seen an increase in ETPs launched as institution interest continues to grow. This is acknowledged by Frank Spiteri, chief revenue officer at CoinShares. “In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum”. He said
Second Major ETP Launched In 2021
CoinShares is one of the biggest crypto investment firms with over $4 billion under its management. This will be the second major ETP launched by CoinShares following the Bitcoin-backed ETP launched on SIX Swiss Exchange in January.
The Bitcoin ETP was launched with $200 million in assets under management and was well received by the financial sector. Institutional custodial firm Komainu will be holding the bitcoin and Ethereum underlying assets backing the ETPs.
CoinShares recently revealed that it plans to conduct an initial public offering on the Nasdaq First North Growth Market in Sweden. This development could position the firm to become the first significant crypto-asset to go public.