CoinShares, one of Europe’s major crypto investment firms, has teamed up with the FTX crypto exchange to introduce the Solana (SOL) exchange-traded product, which physically-backed (ETP).
In fact, CoinShares formally stated on Wednesday that the new product, dubbed CoinShares FTX Physical Staked Solana, will begin with a seed capital of 1 million SOL and provide investors with a 3% staking payout. Besides, the first joint venture between FTX and CoinShares is the new cryptocurrency ETP.
Moreover, the ETP will be available on Xetra, Germany’s largest digital exchange, and will be CoinShares’ fourth in 2022. After commencing trading 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.
Staked coins do not leave the secure custodian where they are housed
The new CoinShares FTX Physical Staked Solana includes a unique staking mechanism, similar to earlier launched staked ETPs. This allows issuers to 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 ETPs remain 100% physically-backed at all times,” according to CoinShares’ release.
On the other hand, the latest ETP launch comes after the launch of FTC Access. A new tool that combines the experience of FTX and FTX US to provide global institutional clients with access to digital asset solutions, according to FTX CEO Sam Bankman-Fried, who added:
“FTX Access’ mission is to offer institutional-grade services and products to market at a low cost. For nearly a decade, CoinShares has provided European investors with innovative and regulated crypto-asset investment vehicles.”
The announcement comes after FTX received approval from the Cyprus Securities and Exchange Commission in early March. In order to publicly announce its growth in Europe. In mid-March, FTX, one of the world’s fastest-growing cryptocurrency firms, received a licence in Dubai. So that it can create a local headquarters and provide crypto derivatives products.