Valour Digital Securities has introduced a new crypto ETP in Europe delivering directly backed exposure to ICP, the native token underpinning the Internet Computer initiative.
The Internet Computer initiative aims to decentralize internet infrastructure.
The Valour Internet Computer Physical Staking ETP (1VIC GY) has been listed on Deutsche Börse with an expense ratio of 1.90%.
Internet Computer is an ambitious blockchain-based project designed to decentralize internet infrastructure, making it possible for smart contracts to run on its network without relying on traditional servers.
The model aims to revolutionize web development by hosting applications directly on the blockchain, enhancing security, efficiency, and the overall web experience.
By connecting data centers worldwide, ICP intends to offer an alternative to dominant cloud services like Amazon Web Services and Google Cloud, promoting a more open and conflict-free internet environment.
The ICP token serves multiple purposes within this ecosystem, including governance, rewarding participating data centers, and covering transaction fees on the network.
With a total market capitalization of more than $6.5 billion, the ICP token is currently the 16th largest crypto asset globally.
The Valour Internet Computer Physical Staking ETP offers institutional investors easy access to ICP through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.
It uses full direct, ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in ICP which is stored using an institutional-grade cold-storage custody solution provided by Copper Markets.
The ETP also earns a passive return attributable to ‘staking’ income generated by the underlying ICP.
Staking is a way of earning rewards for holding certain cryptocurrencies that work on a proof-of-stake consensus mechanism. Proof-of-stake mechanisms put their underlying cryptocurrency to work in verifying and securing transactions on the blockchain. Investors who choose to take part in this process ‘stake’ their cryptocurrency holdings and earn rewards for doing so.
Staked coins do not move from the secure custodian where they are stored, and the ETP remains 100% physically backed at all times. Valour has not specified the expected returns from staking proceeds.