Digital ETP issuer CoinShares has launched the world’s first physically-backed Cardano ETP, designed to share the rewards of staking with investors in a transparent way.
CoinShares writes that its Physical Staked Cardano leverages the Company’s technology platform to provide investors with exposure to Cardano and the rewards for participating in the blockchain’s security.
CoinShares Physical Staked Cardano (CSDA) will be listed on Germany’s main market Xetra and is the third ETP launched by CoinShares this year. The management fee for CSDA is 0.0 per cent and the Staking Reward is 3.0 per cent.
The firm writes that the unique staking mechanism allows the Issuer to share staking rewards with investors by reducing the management fee and increasing the Coin Entitlement of the ETP each day, as staking rewards accrue. 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.
Townsend Lansing, Head of Product at CoinShares, says: “Following the successful launch of our Staked Polkadot and Tezos ETPs on Xetra earlier this year, we are excited to add Cardano to our range of physically-backed staked products. This is the first Cardano ETP in the world to feature transparent staking rewards for investors, and we look forward to launching more digital asset ETPs with best-in-class structures in the coming months.”
