Specialist crypto ETP provider ETC Group has rolled out five new products providing institutional investors with directly backed exposure to Polkadot, Solana, Stellar, Tezos, and Cardano.
Bradley Duke, co-CEO of ETC Group.
The ETPs have been listed on Deutsche Börse Xetra and are available in EUR and USD share classes. Each comes with an expense ratio of 1.95%.
The ETC Group Physical Polkadot (PLKA GY) provides exposure to DOT, the native token underpinning the Polkadot blockchain and the ninth-largest cryptocurrency globally by total market capitalization. Polkadot is a blockchain of blockchains, allowing otherwise independent blockchains to communicate with each other, share security features, and transfer assets freely amongst themselves. DOT serves two vital roles in the system – it is designed to participate in governance decisions, including tabling proposals and voting, and it is used as an electronic payment system.
The ETC Group Physical Solana (ESOL GY) provides exposure to SOL, the native token underpinning the Solana blockchain and the fifth-largest cryptocurrency globally. Solana is a highly functional open-source project providing decentralized finance solutions. Its main innovation is its proof-of-history consensus which leads to incredibly short validation times and allows the blockchain to handle thousands of transactions per second. The protocol is designed to have low transaction costs while still guaranteeing speed and scalability.
The ETC Group Physical Stellar (STLR GY) provides exposure to XLM, the native token underpinning the Stellar blockchain and the twenty-sixth largest cryptocurrency globally. Stellar is a purpose-built blockchain enabling the transfer of any assets and allowing developers to build low-cost financial services on the platform.
The ETC Group Physical Tezos (EXTZ GY) provides exposure to XTZ, the native token underpinning the Tezos blockchain and the forty-second largest cryptocurrency globally. Tezos is a blockchain capable of modifying its own set of rules with minimal disruption to the network through an on-chain governance model. It runs on a Proof of Stake consensus model which relies on investors staking their own tokens to maintain the blockchain for which they are rewarded with passive income, a process known as ‘Baking’.
The ETC Group Physical Cardano (RDAN GY) provides exposure to ADA, the native token underpinning the Cardano blockchain and the sixth-largest cryptocurrency globally. Cardano is a smart contract platform enabling developers to build decentralized applications. Unlike other leading smart contract platforms such as Ethereum, Cardano powers its transaction settlement using the proof-of-stake algorithm, a structure considered less risky in terms of the potential for miners to attack the network.
As with ETC Group’s existing crypto ETPs, which provide exposure to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, the new listings have been brought to market in partnership with London-based white-label issuer HANetf which advises on operations and takes lead responsibility for product marketing and distribution.
Each unit of the ETPs is fully backed by direct holdings of its underlying digital asset, providing investors with direct exposure to the cryptocurrencies with the added oversight, security, and liquidity inherent in the ETP structure.
By investing in the ETPs, investors are able to bypass the technical challenges of dealing directly with cryptocurrency markets such as setting up a digital wallet, managing cryptographic keys, or trading on unregulated crypto exchanges.
Bradley Duke, co-CEO of ETC Group, said: “Investors in digital assets are becoming more sophisticated and demanding with an appetite for exposure beyond just bitcoin and ether. We are pleased to be able to meet their needs using the same secure structure and service providers we have in place for our best-in-class physical Bitcoin ETP.”