Crypto asset management firm CoinShares has launched an exchange-traded product (ETP) backed by (ETH), according to a press release shared with Decrypt today.
The ETP is CoinShares’ second institutional-grade ETP, following on from its Bitcoin ETP, which it launched in January. Its ticker will be ETHE and it will launch with $75 million in assets.
An ETP is a regularly priced security that can be traded during the day on national stock exchanges. In traditional finance, ETPs track prices of assets such as commodities, derivatives, currencies, stocks, or bonds. In ETHE’s case, the underlying asset is Ethereum.
Each ETHE will initially be backed by 0.03 ETH, allowing investors to get passive exposure to Ethereum without actually having to hold the crypto.
“Bringing innovative products like ETHE allows us to continue setting the industry standard for trust and transparency and provide institutions with easy access to industry leading (sic) crypto investment vehicles,” said Townsend Lansing, head of product at CoinShares.
At launch, the ETP will be listed on the SIX Swiss Exchange with a base fee of 1.25%, which is below the industry’s standard of 2%, the firm noted.
“In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum,” said Frank Spiteri, chief revenue officer at CoinShares.
As Decrypt reported, CoinShares, which has over $4 billion under its management, launched its Bitcoin-based ETP on the SIX Swiss Exchange last month. Institutional custody firm Komainu is acting as a custodian for both the Bitcoin and Ethereum ETPs launched by CoinShares.
At the same time, CoinShares yesterday announced its plans to conduct an initial public offering on the Nasdaq First North Growth Market in Sweden, positioning itself to become the first large crypto asset manager to go public.