Virtune launches staked Ethereum ETP

Aug 10th, 2023 | By | Category: Alternatives / Multi-Asset

Swedish digital assets manager Virtune has launched a new ETP in Europe providing physically backed, staked exposure to Ethereum.

Virtune launches staked Ethereum ETP

Ethereum is the second-largest cryptocurrency with a market cap of around $219bn.

The Virtune Staked Ethereum ETP (VIRSETHS SS) has been listed on Nasdaq Stockholm in Swedish krona.

Ethereum, currently the second-largest cryptocurrency with a market cap of around $219 billion, is the world’s leading smart contract platform. With its robust ecosystem, Ethereum enables developers to build decentralized applications that can reshape industries, eliminate middlemen, and bring greater transparency and efficiency to global systems.

The Virtune Staked Ethereum ETP offers institutional investors easy access to ether, the underlying token of the Ethereum network, through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

It uses full direct, so-called ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in ether. Physical (in a digital sense) ether tokens are stored using an institutional-grade custody solution provided by Coinbase.

The ETP is also expected to earn a return of up to 5% per annum attributable to ‘staking’ income generated by the underlying ether.

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.

Virtune uses non-custodial staking meaning that the ether tokens are being staked directly from cold storage, and there is no need to transfer the asset to any third party which is associated with risk.

The ETP comes with an expense ratio of 1.40%.

Christopher Kock, CEO of Virtune, said: “We are very happy to introduce a 100% physically backed Ethereum product integrated with staking. In our view, this represents the most advantageous approach to gaining exposure to Ethereum. There is a growing demand for Ethereum investment alternatives in the Nordics and by introducing this product to the market, we are able to cater to both institutional investors and retail investors. Our offering provides an innovative, secure, transparent, and regulated investment product listed on Nasdaq Stockholm, reinforced by the support of industry-leading service providers.”

Virtune made its ETP debut in May with the launch of the Virtune Crypto Top 10 Index ETP which delivers passive, physically backed exposure to a basket of leading digital assets.

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