There is no doubt that everywhere one looks at, there is an element of crypto or crypto-related activities being carried out. Even though Bitcoin, accompanied by other digital assets, has not been doing well as of late, it is without a doubt that most entities are still major believers in the asset. Bitcoin saw its dominance in the market take a sharp cut after the digital asset witnessed a volatility-induced decline.
With Bitcoin seeing red, other mid place and low placed tokens also feel the brunt save for some specific coins in the decentralized finance sector. In a new update by CoinShares, the firm has announced that it plans to launch a new exchange-traded product backed physically.
This ETP was launched based on Ethereum’s price
According to the details of the event, the firm mentioned that the new exchange trade product was decided upon after monitoring the movement of Ethereum in the market for the last few weeks. Noticeably, this is the first launch that the firm is carrying out after a previous launch of a Bitcoin exchange-traded product on the crypto exchange, SIX.
With the firm seeing itself as one of the biggest investment companies across Europe, Coinshares boasts of nothing less than $4 billion in its AUM. Having its headquarters in London, the company wants to attain success in this latest Ethereum ETP. The product has already been listed on the SIX exchange and is named ETHE with a base fee of nothing less than 1.25%.
In their statement, the company noted that they intentionally made the base fee that way because they wanted to rival the 2%, which is regarded as the industry’s standard. The statement also mentioned that purchasing a unit of the ETHE automatically means that a user gets nothing less than 0.03 Ethereum.
Coinshares wants to use Ethereum to provide service to its clients
With that, it ensures that traders are provided with a passive way to invest and benefit from the exploits of Ethereum in the real world. In the words of the Chief Revenue Officer of the firm, Frank Spiteri noted that this year had witnessed more demand for digital assets by high-value entities. He notes that this culture started last year and has strengthened further since the beginning of this year.
Also, Ethereum on its own has seen a vast influx of investors across the ecosystem. He also noted that they are increasingly confident that their client base is bestowing on them to provide them with the kind of service they will benefit from and are hoping they can achieve that with Ethereum.
Notably, this is the second time this company would be debuting a product like this since the start of the year. The first exchange product that was released was done in January and saw the product track the price of Bitcoin. A previous report from media stated that the Bitcoin traded product began with about $200 million in AUM and had a backing of 0.001 Bitcoin per unit bought.