Today, Liqwid Finance, a Switzerland-based protocol, is launching a Cardano Staking exchange-traded product (ETP) on the SIX Swiss Exchange. The ETP, trading under the ticker symbol “CASL,” is being issued in collaboration with Issuance.Swiss AG and will be available to investors of all types.

The CASL ETP aims to track the performance of the underlying cryptocurrency, ADA, which is managed by the Cardano Foundation. It also incorporates the interest earned from staking the ADA token. Staking allows investors to participate in the network’s consensus mechanism and earn rewards for securing the blockchain.

Liqwid Finance sees the CASL ETP as a bridge between traditional and digital asset management. Unlike most existing financial instruments in the crypto universe that provide exposure to underlying assets such as Bitcoin, Ethereum, or ADA, CASL goes further by actively staking ADA and redistributing the interest earned to investors.

Florian Volery, co-founder of Liqwid Finance, expressed the company’s vision for CASL in a press release. Volery stated, “With CASL, we want to take a new step. One that will bridge the gap between traditional and digital asset management… Investors benefit from a double return on their investment, as well as lower management fees (1.5%) than the average of competing products.”

The launch of the CASL ETP on the SIX Swiss Exchange demonstrates the increasing interest and demand for investment products related to cryptocurrency and blockchain technology. It provides investors with an opportunity to gain exposure to ADA, the native cryptocurrency of the Cardano blockchain, while also earning staking rewards.

As the crypto industry continues to evolve and mature, the availability of regulated investment products like ETPs provides a regulated and secure way for traditional investors to access the potential benefits of cryptocurrencies.

Increasing Number of ETP Listings in Europe Reflects Growing Crypto Demand

On Tuesday, Figment Europe Ltd, an institutional staking infrastructure provider, along with Apex Group, made an exciting development by listing two crypto exchange-traded products (ETPs) on the SIX Swiss Exchange.

The first ETP, called “Figment Ethereum Plus Staking Rewards,” is available for trading under the ticker symbol “ETHF.” This product is fully backed by Ethereum, one of the leading cryptocurrencies, and offers investors exposure to the Ethereum ecosystem. The ETP allows investors to benefit not only from the price performance of Ethereum but also from the staking rewards earned by participating in the network’s consensus mechanism.

The second ETP, named “Figment Solana Plus Staking Rewards,” is trading under the ticker symbol “SOLF.” This product is fully backed by Solana, another prominent blockchain platform known for its scalability and high-speed transaction processing. Similar to the Ethereum ETP, the Solana ETP enables investors to gain exposure to Solana’s ecosystem while earning staking rewards.

Both ETPs are backed by Figment’s staking infrastructure, which provides the necessary technical infrastructure and support for participating in the staking process. Staking involves holding and “staking” a cryptocurrency to support the blockchain network’s operations and security in exchange for rewards.

The listing of these ETPs on the SIX Swiss Exchange highlights the increasing demand for regulated investment products in the cryptocurrency space. These products offer institutional and retail investors a convenient way to access the potential benefits of staking and participate in the growth of the Ethereum and Solana ecosystems.

Figment Europe’s collaboration with Apex Group further strengthens the ecosystem for staking and investment opportunities in the crypto industry. These ETPs provide investors with a regulated and secure avenue to gain exposure to Ethereum and Solana, while also earning staking rewards through Figment’s infrastructure.

The availability of these ETPs on a reputable exchange like the SIX Swiss Exchange highlights the ongoing integration of cryptocurrencies into traditional financial markets. It also underscores the growing recognition of the potential of staking as a means to generate investment returns within the crypto ecosystem.

Institutional Investors Drive “Unprecedented Demand” in Crypto Market

The crypto market has experienced unprecedented demand for crypto exchange-traded products (ETPs) in recent times. These ETPs offer investors exposure to cryptocurrencies in a regulated and accessible manner. However, despite the increasing interest in these products, there have been challenges and instances of ETP closures, particularly during bear markets.

In March 2023, ETP provider 21Shares made the decision to delist its Terra ETP and terminate five other crypto ETPs. This action was primarily driven by low investor demand for these specific products. It’s worth noting that these ETPs had only been open for less than a year before the decision was made to close them.

The crypto market is known for its volatility, and during bear markets, investor sentiment can shift, leading to changes in demand and investment preferences. The closure of ETPs during bear markets can occur when there is insufficient investor interest or when the performance of the underlying assets does not meet expectations.

While some ETPs may face closure, it is important to recognize that the crypto market is still evolving and maturing. The demand for regulated investment products in the crypto space continues to grow, and ETP providers are continuously adapting their offerings to meet investor needs.

Investors and institutions face challenges when it comes to directly buying cryptocurrencies and staking. ETPs can provide a more accessible and familiar investment vehicle for institutions to gain exposure to crypto assets, including the ability to earn staking rewards.

As the market evolves, it is expected that ETP providers will continue to assess investor demand and make adjustments to their product offerings accordingly. Additionally, regulatory frameworks and market conditions will play a significant role in shaping the future of crypto ETPs and determining their success and viability in the market.

Investors should conduct thorough research and consider their risk tolerance and investment objectives when considering exposure to crypto ETPs or any other investment product in the cryptocurrency space.

European Market Takes the Lead with ETPs, Paving the Way for Crypto Adoption

Earlier this year, the U.S. Securities and Exchange Commission (SEC) made a significant move by approving nearly a dozen spot Bitcoin exchange-traded funds (ETFs). This decision had a profound impact on the market, triggering a bull market and a surge in trading activity. The approval of these Bitcoin ETFs in the United States opened up new avenues for investors to gain exposure to Bitcoin through regulated and traditional investment vehicles.

Meanwhile, in Europe, several issuers have been successful in listing a wide range of cryptocurrency exchange-traded products (ETPs) over the years. These ETPs enable investors to access the performance of cryptocurrencies such as Bitcoin and Ethereum without directly holding the underlying assets. Some of the major crypto ETP providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity.

These providers have played a crucial role in expanding the availability of crypto investment products in Europe, catering to the growing demand for regulated and accessible avenues to invest in digital assets. By offering ETPs, these providers allow investors to participate in the potential returns of cryptocurrencies while offering the convenience and familiarity of traditional financial products.

The availability of crypto ETPs in Europe has provided investors with opportunities to diversify their portfolios and gain exposure to the crypto market through established financial channels. These products have opened the door for institutional and retail investors alike to enter the cryptocurrency space, potentially driving further adoption and market growth.

It’s important to note that the regulatory landscape for crypto ETPs varies across jurisdictions. While Europe has seen significant progress in the development and regulation of these products, other regions, such as the United States, have been more cautious and have taken time to approve similar investment vehicles.

As the crypto industry continues to evolve, it is expected that more ETP providers will enter the market, offering a broader range of cryptocurrencies and investment strategies. This expansion will provide investors with increased options and flexibility to tailor their exposure to digital assets according to their investment goals and risk preferences.

By ailf

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