Digital ETP issuer CoinShares and FTX, a regulated cryptocurrency exchange, have announced a partnership between the two organisations.
The firm writes that the first initiative in the partnership is the launch of the world’s first physically-backed Solana exchange traded product (ETP) designed to share the rewards of staking with investors in a transparent way. The ETP will launch with 1M SOL in seed capital.
The partnership with CoinShares is the latest move into the institutional landscape for FTX, following the launch of FTX Access, which offers advisory services, index products, trade execution, analytical tools and capital introductions for institutional investors interested in gaining exposure to digital assets.
For CoinShares, this collaboration with FTX and FTX Access continues the Company’s mission of bridging the gap between traditional finance and digital assets in a secured, transparent and familiar manner. Both organisations are at the forefront of innovation for the financial ecosystem and this partnership will continue to bridge the gap between traditional finance and digital assets.
Sam Bankman-Fried, FTX CEO, says: “The goal of FTX Access is to bring institutional-grade services and products to market in a cost-effective manner. We only want to launch products that are genuinely innovative and add value to our clients. CoinShares has a proven track record of providing European investors with innovative and regulated crypto-asset investment vehicles for close to a decade, making them the obvious choice to collaborate with for institutional offerings. We’re excited to work alongside CoinShares to give investors access to the Solana ecosystem and we look forward to collaborating further on additional offerings.”
CoinShares FTX Physical Staked Solana leverages the Company’s technology platform, Galata, that acts as a bridge between the digital asset ecosystem, connecting CeFi platforms to digital asset protocols and markets, in combination with FTX’s industry-leading institutional offerings to provide investors with exposure to Solana and the rewards for participating in the blockchain’s security. CoinShares FTX Physical Staked Solana will be listed on Germany’s main market Xetra and is the fourth ETP launched by CoinShares this year.
CoinShares FTX Physical Staked Solana (SLNC) has a management fee which has been reduced to 0.0 per cent p.a. and a Staking Reward of 3.0 per cent p.a.
“At CoinShares, we have an aggressive strategy in place to drive the overall growth of the company as well as the digital asset ecosystem as a whole,” says CoinShares’ CEO, Jean-Marie Mognetti. “An integral piece of our growth process is establishing strategic partnerships with top-tier firms that allow us to provide our investors with additional value and increase our institutional offering, giving our clients additional market penetration. A shared goal of FTX and CoinShares is to offer institutions means of access to cryptocurrency markets and through this partnership, both companies will be able to leverage their industry-leading technology to bring innovative products to the market.”
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.
Frank Spiteri, CoinShares Chief Revenue Officer, says: “The feedback on our growing suite of innovative staked ETPs has been overwhelmingly positive, and collaborating with FTX to create the first Solana ETP with transparent staking rewards for investors allows us to double down on our commitment to providing investors with best-in-class regulated crypto products. Solana is one of the most requested exposures amongst our clients and SLNC is launching with 1M SOL in AUM; a level that meets institutions’ and corporates’ baseline for investment consideration.”