CoinShares launches two zero-fee multi-crypto ETPs on Xetra

Apr 2nd, 2023 | By | Category: Alternatives / Multi-Asset

Crypto investment firm CoinShares has launched two new ETPs providing physically backed, zero-fee access to baskets of leading digital assets.

Frank Spiteri, Head of Asset Management at CoinShares.

Frank Spiteri, Head of Asset Management at CoinShares.

The CoinShares Physical Top 10 Crypto Market ETP (CTEN GY) and CoinShares Physical Smart Contract Platform ETP (CSSC GY) have been listed on Deutsche Börse Xetra in euros.

CTEN provides exposure to the ten largest crypto assets by total market capitalization, while CSSC targets the ten largest crypto assets underpinning leading smart contract platforms.

Smart contracts are automated programs that are stored on a blockchain and run when predetermined conditions are met. They form the basis of many crypto-related innovations such as  decentralized applications, decentralized finance, and non-fungible tokens.

Each ETP weights its constituents by market capitalization subject to an individual crypto asset cap of 35%. Rebalancing occurs on a quarterly basis.

As of 27 March, CTEN’s largest holdings were Bitcoin (39.4%), Ethereum (33.5%), Ripple (8.3%), Cardano (4.4%), and Polygon (3.6%).

CSSC, meanwhile, was mostly exposed to Ethereum (35.9%), Cardano (14.7%), Polygon (11.9%), Polkadot (8.2%), and Tron (7.2%).

Commenting on the new listings, Frank Spiteri, Head of Asset Management at CoinShares, said: “We are excited to unveil our two innovative new ETPs to the market today. With CTEN, investors can gain wider market exposure with reduced concentration risk compared to single coins, whilst CSSC offers investors passive exposure to the Web3 revolution in a single diversified, regulated, transparent product.”

The ETPs offer investors easy access to their underlying crypto assets through liquid, regulated vehicles without the technical challenges of setting up private keys or crypto wallets.

They use full direct, so-called ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in the underlying crypto basket. Physical (in a digital sense) crypto assets are stored using an institutional-grade custody solution provided by Komainu.

Each ETP comes with a management fee of 0.00% with CoinShares offsetting the costs of managing the ETPs by earning ‘staking’ income from the underlying crypto assets.

Staking is a way of earning rewards for holding certain crypto assets that work on a proof-of-stake consensus mechanism. Proof-of-stake mechanisms put their underlying crypto assets to work in verifying and securing transactions on the blockchain. Investors who choose to take part in this process ‘stake’ their crypto asset holdings and earn rewards for doing so.

Staked coins do not move from the secure custodian where they are stored, and the ETPs remain 100% physically backed at all times.

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