Two crypto giants are partnering for a tactical initiative of launching a new cryptocurrency. CoinShares is the largest investment-firms in Europe, and FTX is a crypto-exchange platform joining together to launch a physically-staked ETP. The partnership is to launch a Solana offering while the first project is an exchange-traded product (ETP) that uses the staking rewards to reduce costs for investors.
According to the announcement from CoinShares, the firm launched with 1 million SOL in seed capital. It utilizes a specific mechanism that allows investors to get 3% in staking rewards and a reduced management fee of 0%. Moreover, the product will be listed on Xetra, Germany’s major market and is the fourth ETP of CoinShares in 2022.
[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
Consequently, the previously physically-staked ETPs from CoinShares are Polkadot, Cardano, and Tezos. Now, this partnership supports physically-backed Solana ETP while FTX CEO Sam Bankman-Fried has been a long-time backer of Solana Labs.
ETP Launch Follows New FTX Tool
According to CoinShares’ Head of Product, Townsend Lansing, “The company’s internal staking agent helps it avoid liquidity problems by agreeing to lend coins to cover redemptions if they happen.” Besides, the majority of CoinShare investors are from private sectors, thus the two firms are paving the way to access crypto via heavily regulated methods like ETPs. This concept will allow institutional investors to get attracted to the crypto space.
Significantly, the ETP launch follows the launch of FTX Access earlier this month to offer better services for institutional investors. It is a new tool that leverages the experience of FTX and FTX US to offer digital asset products to global institutional clients. Additionally, the CEO of FTX, Sam Bankman-Fried stated that:
“FTX Access’ mission is to provide institutional-grade services and solutions to market at a low cost.”Furthermore, he mentions that CoinShares has been consistently providing innovative services to European investors for the past decade. Thus, it depicts the beneficial fundamentals that CoinShares has been providing in the European sector. More so, this announcement came up after the official announcement of FTX’s expansion to Europe. The exchange received approval from Cyprus Securities and Exchange in early March. FTX has more updates and implementations in its pipeline to its users.