CoinShares, Europe’s largest digital asset supervisor, stated on Thursday it’ll launch a brand new exchange-traded product straight monitoring the FTX token (FTT). The launch is in partnership with world no. 3 crypto alternate FTX.
The ETP will launch on Germany’s Xetra alternate, and can initially start with seed capital of about $40 million.
The launch is the second ETP launched in partnership between CoinShares and FTX. Earlier this yr, the 2 launched a physically-backed Solana ETP, which gave buyers publicity to SOL staking rewards.
FTT costs reacted positively to the transfer, rising about 1.7% instantly after the announcement. However the brand new ETP may point out extra features for FTT.
FTT set for giant institutional cash?
The brand new ETP makes investing in FTT accessible to all kinds of buyers. Fairness-focussed buyers can now achieve publicity to the crypto with out really shopping for tokens. This might additionally appeal to a slew of institutional merchants seeking to achieve publicity to the token.
FTT is the native token on the FTX crypto alternate, and is used to facilitate transactions on the alternate. Its worth actions additionally present some context on FTX’s buying and selling volumes.
As such, buyers seeking to achieve publicity to FTX may also purchase the token, provided that the alternate doesn’t have publicly listed shares.
Altcoins see rising institutional demand
Coinshares’ latest FTT product is its fifth crypto-related launch this yr. The transfer comes amid rising institutional curiosity in tokens past the stalwart Bitcoin and Ethereum.
The asset supervisor already provides ETPs masking Polkadot, Tezos, Cardano, and Litecoin. But it surely hasn’t been alone in exploring altcoin-backed devices.
U.S.-based Grayscale had earlier this yr launched a wise contracts fund monitoring a number of altcoin initiatives. Fund managers reminiscent of Wisdomtree and 21Shares additionally supply a wide range of altcoin-backed merchandise, whereas alternate operator CME lately launched indexes monitoring altcoin costs.
However ETPs that straight observe crypto costs are relegated to non-American nations, provided that the USA is but to approve a spot crypto product.
Nonetheless, ETFs and institutional merchandise are instrumental in attracting giant capital flows into crypto.
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