CoinShares launches two zero-fee multi-crypto ETPs on Xetra | ETF strategy
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Crypto investment company Coin shares has launched two new ETPs that provide physically backed, free access to baskets of leading digital assets.
Frank Spiteri, head of asset management at CoinShares.
The CoinShares Physical Top 10 Crypto Market ETP (CTEN GY) and CoinShares Physical Smart Contract Platform ETP (CSSC GY) has been listed on Deutsche Börse Xetra in euros.
CTEN provides exposure to the ten largest cryptoassets by total market capitalization, while CSSC targets the ten largest cryptoassets underlying leading smart contract platforms.
Smart contracts are automated programs that are stored on a blockchain and run when predetermined conditions are met. They form the basis for many crypto-related innovations such as decentralized applications, decentralized finance and non-fungible tokens.
Each ETP weights its constituents by market capitalization subject to an individual crypto asset cap of 35%. Rebalancing takes place on a quarterly basis.
As of March 27, CTEN’s largest holdings were Bitcoin (39.4%), Ethereum (33.5%), Ripple (8.3%), Cardano (4.4%) and Polygon (3.6%).
CSSC, meanwhile, was mostly exposed to Ethereum (35.9%), Cardano (14.7%), Polygon (11.9%), Polkadot (8.2%) and Tron (7.2%).
Commenting on the new listings, Frank Spiteri, Head of Asset Management at CoinShares, said: “We are pleased to unveil our two innovative new ETPs to the market today. With CTEN, investors can gain broader market exposure with reduced concentration risk compared to single coins, while CSSC offers investors passive exposure to the Web3 revolution in a single diversified, regulated, transparent product.”
The ETPs provide investors with easy access to their underlying crypto assets through liquid, regulated vehicles without the technical challenges of setting up private keys or crypto wallets.
They use full direct, so-called “physical” replication, where each ETP share is 100% secured by a corresponding investment in the underlying cryptocurrency. Physical (in the digital sense) crypto-assets are stored using an institutional-grade custody solution provided by Komainu.
Each ETP comes with a 0.00% management fee with CoinShares offsetting the cost of managing the ETPs by earning “stakes” from the underlying crypto assets.
Staking is a way to earn rewards for holding certain cryptoassets that work on a proof-of-stake consensus mechanism. Proof-of-stake mechanisms put their underlying cryptoassets to work verifying and securing transactions on the blockchain. Investors who choose to take part in this process “stake” their holdings of cryptoassets and earn rewards for doing so.
Deposited coins are not moved from the secure custodian where they are stored and the ETPs remain 100% physically backed at all times.
