CoinShares cryptocurrency investment firm has teamed up with FTX to establish a new physically-backed Solana (SOL) exchange-traded product (ETP) that will be listed on Germany’s major digital market Xetra.
CoinShares formally stated on Wednesday that the new product, dubbed CoinShares FTX Physical Staked Solana, will begin with 1 million SOL in seed capital, letting investors earn 3% in staking rewards. The new cryptocurrency ETP is the first initiative between FTX and CoinShares.
About the physically-backed Solana ETP
The product will be launched on Xetra, Germany’s largest digital exchange, and will be CoinShares’ fourth ETP in 2022. After launching the CoinShares Physical Staked Tezos ETP and the CoinShares Physical Staked Polkadot ETP in January, the firm introduced the CoinShares Physical Staked Cardano ETP in early March.
The new CoinShares FTX Physical Staked Solana, like previous staked ETPs, features a unique staking mechanism that lets issuers share staking benefits with investors by lowering the management fee and raising the ETP’s coin entitlement each day.
“Staked coins do not leave the secure custodian where they are housed, and the ETPs remain 100 percent physically-backed at all times,” according to CoinShares.
The latest ETP launch comes after the launch of FTC Access, a new platform that combines the experience of FTX and FTX US to give global institutional clients with access to digital asset solutions, according to FTX CEO Sam Bankman-Fried.
“The goal of FTX Access is to bring institutional-grade services and products to market in a cost-effective manner. CoinShares has a proven track record of providing European investors with innovative and regulated crypto-asset investment vehicles for close to a decade.
The announcement comes after FTX received approval from the Cyprus Securities and Exchange Commission in early March to publicly announce its growth in Europe. In mid-March, FTX, one of the world’s fastest-growing cryptocurrency firms, received a license in Dubai to create a local headquarters and provide crypto derivatives products.