CoinShares FTX Physical Staked Solana will be listed on Xetra, Germany’s largest digital exchange, and will be the company’s fourth ETP this year.
CoinShares, one of Europe’s major cryptocurrency investment firms, has teamed up with FTX to establish a new physically-backed Solana (SOL) exchange-traded product (ETP).
CoinShares formally stated on Wednesday that the new product, dubbed CoinShares FTX Physical Staked Solana, will begin with 1 million SOL in seed capital, letting investors to earn 3% in staking rewards. The new cryptocurrency ETP is FTX and CoinShares’ first joint venture.
[1/5] We are excited to announce that we've partnered with @FTX_Official and our first initiative is to launch a physically staked Solana ETP with SOL1mn seed capital, Staking Rewards of 3.0% p.a, and a reduced management fee of 0.0% p.a. pic.twitter.com/dCq5H2CH1c
— CoinShares 👩🚀 (@CoinSharesCo) March 23, 2022
The product will be launched on Xetra, Germany’s largest digital exchange, and will be CoinShares’ fourth ETP in 2022. After launching the CoinShares Physical Staked Tezos ETP and the CoinShares Physical Staked Polkadot ETP in January, the firm introduced the CoinShares Physical Staked Cardano ETP in early March.
The new CoinShares FTX Physical Staked Solana, like previous staked ETPs, features a unique staking mechanism that lets issuers to share staking benefits with investors by lowering the management fee and raising the ETP’s coin entitlement each day.
“Staked coins do not leave the secure custodian where they are housed, and the ETPs remain 100 percent physically-backed at all times,” according to CoinShares.
The latest ETP launch comes after the launch of FTC Access, a new platform that combines the experience of FTX and FTX US to give global institutional clients with access to digital asset solutions, according to FTX CEO Sam Bankman-Fried.
“FTX Access’ mission is to provide cost-effective institutional-grade services and products to market.” For nearly a decade, CoinShares has been providing European investors with innovative and regulated crypto-asset investment vehicles.
The announcement comes after FTX received approval from the Cyprus Securities and Exchange Commission in early March to publicly announce its growth in Europe. In mid-March, FTX, one of the world’s fastest-growing cryptocurrency firms, received a licence in Dubai to create a local headquarters and provide crypto derivatives products.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.