CoinShares Just Launched $75M Physically-Backed ETH ETP

CoinShares just launched a $75 million physically-backed Ethereum ETP on the Switzerland Stock exchange as we are reading more in our latest ETH news.

A month after launching a Bitcoin ETP on the Switzerland SIX exchange, CoinShares just launched a physically-backed exchange-traded product following the performance of the Ethereum, the second-biggest cryptocurrency. The platform describes itself as “Europe’s largest digital asset investment house” and is a crypto-oriented manager with more than $4 billion in AUM. The company headquartered in London announced the new crypto product which is a new physically-backed ETP that will track the performance of Ethereum.

We are excited to announce the launch of $ETHE, our newest ETP on the new CoinShares Physical platform, with $75M in AUM.

This brings the AUM across our ETPs to $4.1B!https://t.co/uMX3NMz6QD

— CoinShares 👩‍🚀 (@CoinSharesCo) February 24, 2021

Dubbed the called CoinShares Physical Ethereum, the product is listed on the regulated SIX swiss exchange under the ETHE ticker and has a base fee of 1.25%. According to the company, the cost is much lower than the industry standard of 2%. The statement explained that every unit of the ETHE is backed with 0.03 Ether tokens at launch so it will provide the investors with passive exposure to Ethereum’s native asset with the ETP convenience. Chief Revenue Officer Frank Spiteri 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. 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.”

It’s worth noting that CoinShares has already launched a similar product tracking the performance of the crypto asset launched this year and the first one was released in mid-January, following the largest digital asset by market cap which is of course-Bitcoin. Before the launch that it started with an AUM of $200 million and each one was backed with 0.001 BTC.

As previously reported, CoinShares already has a separate group of ETPs via the XBT provider that operates as its subsidiary. XBT provider’s Ether tracker one and BTC tracker one are listed on the Stockholm Nasdaq exchange. The XBT provider reported $2.9 billion of assets under management since the year started. The Swiss-based ETP will start off with $200 million in assets under management according to the chief strategy officer of the platform Meltem Demirors.