SIX, one of the major stock exchanges in Switzerland has launched a crypto income-generating exchange-traded product (ETP) tied to Tezos (XTZ).
The symbol under which the ETP is traded is AXTZ. The fintech Amun AG and the Tezos Foundation have partnered up in order to issue the product. The date on which it went live was November 5th.
Additional Yield Through Baking
Based on an overview of the product, its investment objective is to bring more exposure to how Tezos performs and to generate additional yield for its investors through baking rewards. Just like in the case of blockchains based on proof-of-stake or PoS, Tezos investors can make a passive income by depositing tokens in order to keep the network up and running while earning rewards.
Baking is a Tezos-specific term and it means the stakeholders have the option to be part of the staking and governance if they delegate their coins to a delegation service. As soon as delegated, the holdings become correlated with the service’s staking balance and pay rewards accordingly, as soon as the network releases them.
2.5% Proceeds Fee from Amun’s Tezos ETP
Amun said the fee for proceeds from its Tezos ETP will be 2.5%. The underlying assets are going to be managed and secured with Coinbase Custody, which is institution-grade. Amun has also stated that it has 100% of these assets’ value in cold storage.
The Blockchain Sector Starts to Look Differently
In October, Amun and cryptocurrency broker Bitcoin Suisse have partnered up in order to launch an ETP based on Bitcoin (BTC) and Ether (ETH), on the SIX market. AMUN has 9 crypto ETP products on SIX exchange, out of which one is XRP-based.
Staking Dominance at 10% of the Market
The crypto exchange Binance has promoted a research saying that since Ethereum is expected to go PoS, staking may greatly impact the crypto world. The major 10 crypto assets that support or may support staking are capitalized at $25.8 billion, which indicates staking dominates 10% of the market’s capital.