CoinShares, Europe’s largest crypto investment firm, is launching a new physically-backed exchange-traded product (ETP). Focusing on Ethereum’s Ether, the ETP will provide investors with unassertive exposure to the asset.
Called CoinShares Physical Ethereum (ETHE), CoinShares announced the news on Wednesday, that the new investment product will be launching with approximately $75 million in assets under management. They said that each unit of ETHE is backed with 0.03 ETH at launch.
It will be the second product released on the ETP platform after the Bitcoin ETP and will initially be listed on the SIX Swiss Exchange. Under the ticker “ETHE”, it has a base fee of 1.25%.
What is CoinShares?
CoinShares is a digital asset investment firm that manages $4 billion in assets on behalf of a global client base and serves as a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem.
With ETHE’s base fee under 2%, it becomes an accessible investment and will provide passive exposure to interested investors with the ease of ETP. It will be readily available to investors as its Assets Under Management (AUM) at launch surpasses the baseline requirements for institutional and corporate investment consideration.
According to a Bloomberg report, CoinShares launched an exchange-traded bitcoin product (ETP) on the Swiss stock exchange SIX in January 2021. Both the products, Bitcoin ETP and Ethereum ETP, will be custodied by Komainu, a venture that launched about a year ago involving Nomura Holdings, CoinShares, and Ledger.
The cryptocurrency sector has recently seen the demand shifting from being retail investors to financial institutions. This led to other products such as derivatives like ETPs gain immense popularity. According to a report by research firm CryptoCompare, all crypto ETPs increased by 95% to a record of $35.9 billion from the previous month.
Chief Revenue Officer of CoinShares Frank Spiteri concluded the announcement by saying, “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. We are encouraged by our client’s trust in our team to guide them in their journey through the digital asset ecosystem, and for many, Ethereum is an important part of that journey.”