CoinShares is launching a new Ether-backed exchange traded product (ETH), allowing passive exposure to the latter.
CoinShares repeats an ETP ETH
CoinShares expands its product range with a new financial instrument based onETH, the CoinShares Physical Ethereum (ETHE).
This new investment product is launched with approximately $ 75 million in assets under management.
CoinShares announced its launch on February 24, 2021. Each unit ofETHE is backed by 0.03 ETH at the time of launch.
CoinShares had launched its first product traded on the stock exchange (AND P) based on Bitcoin, the CoinShares Physical Bitcoin (BITC), in January 2021.
Just like the BITC, theETHE will initially be next to the SIX Swiss Exchange. TheETHE aims to provide investors with passive exposure toEther, at a base commission of 1.25%.
Komahinu will be the custodian ofETHE of CoinShares. It is the custodian of the digital assets of Nomura Holdings. Komahinu was also the custodian of BITC.
The SIX Swiss Exchange is one of the largest stock exchanges in the world. It has a trading platform for various AND P cryptos.
BTC and ETH as collateral
The patroness of CoinShares, Meltem Demirors, indicated at the end of 2019, that “people want exposure to Bitcoin in their retirement savings ”. CoinShares bet on products backed by cryptos, in particular BTC et al’ETH.
The BTC hit an ATH above $ 58,300. TheEther received the 2,000 USD.
The first 2 cryptos in terms of market cap underwent a major correction after the bullish rally during the 1st weeks of February 2021, which allowed them to reach these new all-time highs.
Digital asset managers continue to expand their portfolio of investment products to allow pro investors to gain easy and lower risk exposure to cryptocurrencies. Institutionals are increasingly interested in Bitcoin. Ether is also starting to grab their attention. The financiers of traditional finance will be forced at a time to update their knowledge to master the various cogs of the new finance, in order to be able to offer crypto financial products adapted to the requirements of different customer profiles. In the cryptosphere, some cryptocurrencies are intended to be transactional currencies – which makes sense, while others have become assets giving birth to new financial instruments criticized by regulators today, which will become essential tomorrow.
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.