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CoinShares lists crypto ETPs with transparent staking rewards and lower management fees


USD4 billion digital asset manager has announced the launch of the world’s first physically-backed crypto ETPs designed, the firm says, to share the rewards of staking with investors. 

CoinShares Physical Staked Tezos and CoinShares Physical Staked Polkadot will be listed on Germany’s main market Xetra. The new ETPs leverage CoinShares’ technology platform to provide simple exposure to proof-of-stake protocols and the rewards for participating in their security, the firm says.
Townsend Lansing, Head of Product at CoinShares, says: “Proof-of-stake protocols require investors to use their holdings to validate the network and its transactions. The validator also earns the protocol’s digital currency, which means investors can contribute their assets to create large pools that share in those rewards. We are proud to launch the first physically-backed crypto ETPs with a unique mechanism that enables us to share staking rewards with investors in a transparent way.” 
The management fees on CoinShares Physical Staked Tezos (XTZS) will be 0.0 per cent and the Staking Reward will be 3.0 per cent per annum. The CoinShares Physical Staked Polkadot (CDOT) has management fees of  0.0 per cent per annum and a Staking Reward of 5.0 per cent per annum.

According to their website, CoinShares’ Staked ETPs are built to allow the Issuer to share staking rewards with investors by a) reducing the management fee and b) increasing the Coin Entitlement of the ETP each day, as staking awards accrue. 
The Issuer formally announced on January 26, 2022 a reduction in the management fees to 0.0 per cent p.a. for both Tezos and Polkadot ETPs, and additional Staking Rewards of 3.0 per cent p.a. and 5.0 per cent p.a., respectively. 
CoinShares also notes that staked coins do not move from the secure custodian where they are stored, and the ETPs remain 100 per cent physically backed at all times. 
Frank Spiteri, CoinShares’ Chief Revenue Officer, says: “ETP investors should be able to participate in the full growth potential of these protocols. CoinShares has a history of firsts and innovation, having launched Europe’s first Bitcoin ETP in 2015, and we are excited to push the industry forward again with these staked ETP launches. We believe that over time this will become investors’ preferred structure for ETPs tracking digital assets based on proof-of-stake blockchains.”
Jean-Marie Mognetti, CoinShares CEO, says: “Our past successes were closely correlated with the quality and the innovative essence of our technology platforms and infrastructures, always contributing to elevate trust, transparency and innovation as core principles of our Exchange Traded Product offerings. One more time, we are back with a unique offering, breaking the established principles of this industry by leveraging CoinShares’ technology stack and expertise.”

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