Digital asset investment firm CoinShares has announced the launch of two new physically-backed exchange-traded products (ETPs), one for Tezos ($XTZ) and one for Polkadot ($DOT). Both ETPs are designed to share the rewards of staking their underlying assets with investors.
According to an announcement, CoinShares’ new ETPs will be listed on Germany’s Xetra exchange. Both products offer investors access to cryptoassets that rely on Proof-of-Stake (PoS) consensus algorithms, meaning token holders can stake their coins in a bid to help secure the network, and are rewarded for doing so.
While physically-backed ETPs often incur a management fee, CoinShares appears to be dropping it to increase the Coin Entitlement of each ETP per day as staking rewards accrue. Coin entitlement refers to the number of cryptoassets the ETPs are entitled to hold. The announcement reads:
The Issuer formally announced on January 26, 2022 a reduction in the management fees to 0.0% p.a. for both Tezos and Polkadot ETPs, and additional Staking Rewards of 3.0% p.a. and 5.0% p.a., respectively.
The staked XTZ and DOT, it’s worth noting, will not moved from the custodian where they are stored, and the ETPs will “remain 100% physically backed at all times.” CoinShares notably launched Europe’s first Bitcoin ETP in 2015, and has since been launching products that offer investors exposure to other cryptoassets. These include products for Ethereum’s ether ($ETH), Litecoin ($LTC), and $XRP.
As CryptoGlobe reported, a report by Electric Capital has revealed Polkadot’s growth has been much faster than that of Ethereum when compared across similar points in their histories. The project’s network expansion has that of other ecosystems including Solana and Terra.
Late last year, McLaren Racing announced the launch of a non-fungible token (NFT) collection on top of the Tezos blockchain called the “McLaren Racing Collective,” in a move made to engage with Formula 1’s over 87 million fans.
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