Europe’s largest digital asset investment firm CoinShares and crypto exchange FTX have entered into a strategic partnership.
According to a press release issued by CoinShares yesterday, the first initiative in this partnership is “the launch of the world’s first physically-backed Solana exchange traded product (ETP) designed to share the rewards of staking with investors in a transparent way.” This ETP, which is called “CoinShares FTX Physical Staked Solana“, will “launch with 1M SOL in seed capital.”
The press release went on to say that this is “the latest move into the institutional landscape for FTX, following the launch of FTX Access, which offers advisory services, index products, trade execution, analytical tools and capital introductions for institutional investors interested in gaining exposure to digital assets.” And for CoinShares, “this collaboration with FTX and FTX Access continues the Company’s mission of bridging the gap between traditional finance and digital assets in a secured, transparent and familiar manner.”
FTX Co-Founder and CEO Sam Bankman-Fried (aka “SBF”) had this to say:
“The goal of FTX Access is to bring institutional-grade services and products to market in a cost-effective manner. We only want to launch products that are genuinely innovative and add value to our clients. CoinShares has a proven track record of providing European investors with innovative and regulated crypto-asset investment vehicles for close to a decade, making them the obvious choice to collaborate with for institutional offerings. We’re excited to work alongside CoinShares to give investors access to the Solana ecosystem and we look forward to collaborating further on additional offerings.“
CoinShares FTX Physical Staked Solana will be “listed on Germany’s main market Xetra and is the fourth ETP launched by CoinShares this year.”
Here are a few details about this ETP:
- Base Currency: USD
- Management fee: Reduced to 0.0% p.a.
- Staking Reward: 3.0% p.a.
- Bloomberg Code: SLNC
- ISIN: GB00BNRRFY34
CoinShares CEO Jean-Marie Mognetti stated:
“At CoinShares, we have an aggressive strategy in place to drive the overall growth of the company as well as the digital asset ecosystem as a whole. An integral piece of our growth process is establishing strategic partnerships with top-tier firms that allow us to provide our investors with additional value and increase our institutional offering, giving our clients additional market penetration. A shared goal of FTX and CoinShares is to offer institutions means of access to cryptocurrency markets and through this partnership, both companies will be able to leverage their industry-leading technology to bring innovative products to the market.“
Finally, it is worth mentioning that “the unique staking mechanism allows the Issuer to share staking rewards with investors by reducing the management fee and increasing the Coin Entitlement of the ETP each day, as staking rewards accrue.” Staked coins “do not move from the secure custodian where they are stored, and the ETPs remain 100% physically-backed at all times.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.