CoinShares, the biggest digital asset investment firm in Europe with $1.5 billion in assets under management (effective at the time of writing), has listed a staked, physically-backed Algorand ETP on Xetra, Germany’s primary market, Coin Journal learned from a press release.
This ETP is the latest to use Galata, CoinShares’ proprietary technology platform, which lets investors avail of rewards linked to taking part in the Algorand blockchain’s security.
Management fee drops to zero
Below are the primary features of CoinShares Physical Staked Algorand:
- Staking Reward: 2.0% p.a.
- Management Fee: Reduced to 0.0% p.a.
- ISIN: GB00BNRRF105
Pure proof of stake
Algorand, created in 2019, is considered the flagship Pure Proof of Stake (PPoS) blockchain. Any network participant can be a validator, unlike most Proof of Stake (PoS) networks. Algorand is also one of the few blockchains that are carbon negative.
CoinShares Head of Product Townsend Lansing said:
We’re encouraged by the demand for our products despite the volatility seen across digital asset markets. This goes especially for our staked, bankruptcy-remote ETPs. We’re happy to be launching against the background of positive regulatory news after the European Markets in Crypto assets Regulation was finalized. This was a great first step in the direction of a transparent and comprehensive regulatory regime governing digital assets.
The investment firm’s staked ETPs were created to enable issuers to share staking rewards with investors by increasing the ETP’s coin entitlement daily and reducing the management fee.
ETPs have full backing at all times, and staked coins do not move from the secure custodian where they are stored.
CoinShares in the news
The firm was also in the news last week after announcing it had acquired the first crypto asset manager regulated under AIFMD (Alternative Investment Fund Managers Directive), Napoleon Asset Management.
This enabled CoinShares to make AIFMD-compliant services and products available apart from its status as the market leader among issuers of crypto ETPs.