CoinShares Launches Ethereum-Backed ETP to Satisfy Investors’ Crypto Demand

CoinShares has announced the launch of an Ether-backed exchange-traded product. The firm hopes to capture the growing trend of institutional investors.

  • CoinShares, the British crypto investment company, has announced the launch of another investment product.
  • Earlier today, the firm said that it had released a physically-backed Ether exchange-traded product (ETP).

Another Crypto Investment Product from CoinShares

Per the announcement, the new product, known as the CoinShares Physical Ethereum (ETHE), will launch with about $75 million in assets under management. The investment firm added that each unit of the product would be backed with 0.03 ETH at launch.

ETHE will launch initially on the SIX Swiss Exchange with a base fee of 1.25 percent. As CoinShares explained, the price will establish its product as an attractive option for institutions looking to improve their Ether exposure while paying low management fees. Townsend Lansing, CoinShares' Head of Product said,

“Our second product launch this year brings the world's second-largest digital asset to our new CoinShares Physical platform. Bringing innovative products like ETHE allows us to continue setting the industry standard for trust and transparency and provide institutions with easy access to industry-leading crypto investment vehicles.”

Frank Spiteri, the firm's Chief Revenue Officer, added that CoinShares had been encouraged by the continued growth in institutional cryptocurrency demand. They believe that this demand should hold strong going forward, and they would like ETHE to be a viable port of entry into the crypto space.

A separate report from Bloomberg confirmed that Koimainu, a digital asset custodian with backing from Japanese financial services giant Nomura Holdings, will serve as a custodian for the investment product.

ETHE is the second crypto ETP to launch from CoinShares in as many months. In January, the firm launched a Bitcoin ETP on the SIX Exchange. Per a Bloomberg report, the ETP – with a ticker “BITC” – is physically backed by 0.001 BTC. Koimainu also provides physical backing for the product. CoinShares claims that it will give best-in-class exposure to investors looking for strong due-diligence processes as they commit to Bitcoin.

Institutional Demand Surges Amid BTC Pullback

Institutional demand is undoubtedly surging as several top firms have shown a propensity for crypto investment this year. This month alone, auto manufacturing giant Tesla announced that it had purchased $1.5 billion in Bitcoin, becoming one of the largest crypto holders in the world in a single day.

MicroStrategy, a company that already made waves in the crypto space for its Bitcoin appetite, has doubled down once more on the market. The company announced earlier today that it had purchased another $1 billion in Bitcoin, bringing its total BTC treasury to about 90,000 units of the leading cryptocurrency.

The purchase comes as Bitcoin looks to recover its all-time high just above $58,000. After falling over 20 percent in the past few days, the asset is rising steadily again and dragging several other top cryptos along.

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