By
Temitope Olatunji
April 24th, 2024
Both CoinShares and FTX are looking to launch their upcoming Solana ETP on Germany’s major digital market Xetra.
Leading European crypto digital assets investment firm CoinShares and Bahamian crypto exchange FTX are teaming up to launch a Solana (SOL) exchange-traded product (ETP).
Dubbed CoinShares FTX Physical Staked Solana, the new product will launch with 1 million SOL in seed capital. An official CoinShares announcement issued on Wednesday, March 23rd read:
“We are excited to announce that we’ve partnered with FTX and our first initiative is to launch a physically staked Solana ETP with SOL1mn seed capital, Staking Rewards of 3.0% p.a, and a reduced management fee of 0.0% p.a.”
Insight Into the CoinShares FTX Physical Staked Solana Initiative
CoinShares FTX Physical Staked Solana represents the first initiative between CoinShares and FTX. Furthermore, it is also the first product from FTX’s new institutional unit FTX Access which launched earlier this month. FTX Access was introduced as a one-stop shop with advisory, trade execution, and analytical tools. Weighing in on the latest CoinShares news, FTX CEO Sam Bankman-Fried said:
“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.”
In addition, Bankman-Fried expressed enthusiasm at the FTX and CoinShares partnership. The FTX chief executive also teased future collaborative endeavors with the crypto investment firm saying that they are “excited to work alongside CoinShares to give investors access to the Solana ecosystem and they [we] look forward to collaborating further on additional offerings.”
The new crypto ETP will list on Xetra, a major German digital market, and represents the fourth ETP rollout by CoinShares this year. Europe’s largest digital asset brokerage, Xetra previously launched the CoinShares Physical Staked Cardano ETP in early March. The Cardano ETP followed the CoinShares Physical Staked Tezos ETP and the CoinShares Physical Staked Polkadot ETP, both launched in January.
CoinShares CEO, Jean-Marie Mognetti also touched on the collaborative effort with FTX saying that “a shared goal of FTX and CoinShares is to offer institutions means of access to cryptocurrency markets.”
The CoinShares CEO further explained that the partnership would allow both companies to leverage their “industry-leading” technology.
Unique Staking Mechanism
Just like previously launched staked ETPs, the new CoinShares-FTX product offers a unique staking mechanism. This mechanism allows issuers to share staking rewards with investors by reducing the applicable management fee. According to the announcement, this also increases the Coin Entitlement of the ETP each day as staking rewards accrue. Staked coins remain in place in storage with secure custodians, and the ETPs have 100% physical backing at all times.
About CoinShares and FTX
CoinShares is Europe’s largest crypto investment firm with billions in assets under management on behalf of a global client base. The company seeks to increase access to the digital asset ecosystem by launching new and innovative financial products and services.
FTX, as a trader-oriented crypto exchange, offers a slew of innovative products. These include industry-leading derivatives, options and volatility products, tokenized stocks, prediction markets, leveraged tokens, and an OTC desk. In mid-March of this year, FTX secured licensing to establish local headquarters and offer crypto derivatives products in Dubai.