On Tuesday, Asset manager CoinShares, announced the launch of a new exchange-traded product (ETP), CoinShares Physical Litecoin (Ticker: LITE), making its total investment number of products to seven. The ETP will be listed on SIX Swiss Exchange first under the ticker LITE.
According to an announcement, each unit of the ETP will be backed with 0.20 LTC listed under the ticker LITE, thus providing investors with passive exposure to the Litecoin network’s native asset. The product will be traded against the US dollar as the base currency with a fee of 1.5% per annum.
LITE will be the third such product launched by CoinShares in 2021, following ETPs’ announcement backed by BTC (-1.3%) and ETH (-0.69%) in January and February, respectively.
Digital Asset Ecosystem
Frank Spiteri, Chief Revenue Officer at CoinShares, noted that as the demand for digital assets amongst the traditional investment community gradually increases, they are beginning to observe the green shoots of demand for investment exposures outside of the two popular networks.
He added that CoinShares dominates in designing novel ways for investors to access the digital asset ecosystem.
CoinShares intends to add several new products to its platform to meet this growing demand from investors in the coming year. CoinShares’ Weekly Fund Flows Report tracks investor sentiment changes via inflows and outflows in key digital asset investment products and has observed an uptick in inflows into various digital assets as new investment products arise. LITE is the next level on a path to present an extensive and diversified offering of ETPs to market.
Founded in 2015, CoinShares Group is Europe’s largest digital asset investment firm with offices in Jersey, Stockholm, London, and New York. The firm aims at expanding access to the digital asset ecosystem while serving as trusted partners for their clients and managing hundreds of millions in assets on behalf of a global investor base.
Townsend Lansing, CoinShares’ Head of product, said that LITE comes hot on the heels of their Bitcoin and Ethereum product launches in 2021 and will gain immensely from the same robust and transparent physically-backed product structure. The head of product added that they were thrilled to add exposure to such a well-accepted and widely traded crypto-asset to their new product line.
Litecoin is the eighth-largest cryptocurrency globally with a market capitalization of $14.83 billion. Litecoin has been falling behind Ethereum and some of the top cryptocurrencies by market capitalization. While the smart-contracts giant has posted a year-to-date return of nearly 190%, LTC has only risen by 85% since the first quarter of 2021