CoinShares, Europe’s largest digital asset investor with more than $ 4 billion in assets under management, announced a new physically assisted ETP, CoinShares Physical Ethereum (ticker: ETHE).
Following the Bitcoin CoinShares product (ticker: BITC) in January, ETHE is the second product introduced on the platform for institutional-grade ETP. It will start with approximately $ 75 million in assets under management. Each ETHE unit is 0.03 Ether backed at launch, allowing investors to have passive exposure to Ethereum’s native assets with the convenience of ETP.
ETHE was listed initially on the regulated SIX Swiss Exchange with a base fee of 1.25%. It makes ETHE an attractive choice for institutional investors looking for an affordable tool to invest in Ethereum at a fee below the 2% industry standard.
This product will be easily accessible to investors because its AUM when launched, exceeds the basic requirements for verification of institutional and corporate investments.
Townsend Lansing Product Manager commented that this second launch this year brings the world’s second-largest digital asset to the new physical platform CoinShares. With innovative products like ETHE, they can continue to set the industry standard for trust and transparency to provide institutions with easy access to investment funds.
Frank Spiteri, Chief Revenue Officer, concluded that in early 2021, demand for digital assets from institutions has been on the rise. Investors’ interest in Ethereum has also increased. They are encouraging customers to trust the team to guide them on their journey through the digital asset ecosystem, and for many, Ethereum is a significant part of that journey.
Bitcoin Investment is Becoming Popular
The move follows the launch of the first publicly traded Bitcoin fund in Canada, North America this month by Purpose Investments Inc. and Evolve Funds Group Inc.
Both have rapidly grown. BTCC approached $ 400 million in stock trading in just two days.
In the United States, the Securities and Exchange Commission has rejected many applications for Bitcoin ETFs. They fear that prices could face manipulation and liquidity would be insufficient.
The closest alternative is Grayscale Bitcoin Trust, with about $34 billion in assets. Investors are willing to pay a 7.5% premium to enter now, and the average lifetime premium is 37%. If ETFs get introduced in the US, the growth will be enormous.
Bitcoin held on behalf of BITC is held by Komainu, a regulated custodian for institutional-level digital assets. CoinShares is a pioneer in digital asset investing, launching the world’s first regulated Bitcoin mutual fund and the world’s first Bitcoin-based securities on a regulated exchange. The company currently manages $ 2.9 billion in assets, making it Europe’s largest digital wealth manager.