The large European crypto asset management CoinShares has enriched its investment offer with a new exchange-traded product (ETP) based on the cryptocurrency Algorand (ALGO).
As CoinShares has announced, the “index fund”, which represents fixed currency units on Algorand, will be listed on Xetra, the influential electronic trading platform of Deutsche Börse, today Thursday.
The ETP called CoinShares Physical Staked Algorand is to be run on the Xetra under the ticker RAND. The investment product, which is provided via the company’s own platform Galata, enables investors of the European crypto asset management to profit from the interest income from the staking of the cryptocurrency, which in turn amounts to 2%, in addition to the mere price development of ALGO.
Thus, the new Algorand ETP joins a series of staking ETPs in the CoinShares offering, which so far consists of similar investment products for the crypto projects Polkadot (DOT), Tezos (XTZ), Cardano (ADA), Solana (SOL), Cosmos (ATOM) and Polygon (MATIC).
The blockchain project Algorand, founded in 2017, is a smart contract platform similar to Ethereum, which aims to provide even more efficiency through a modified version of the proof-of-stake (PoS) consensus process called Pure PoS (PPOs). In contrast to conventional PoS networks, Algorand allows every user to become a validator by staking at least 0.1 ALGO (0.03 US dollars).
The launch of the new CoinShares Algorand ETP comes amid the ongoing bear market, which has brought massive price slumps. Thus, the market capitalization of the crypto market is now again below 1 trillion. US dollars.
“Despite the volatility that has been seen in the crypto market in recent weeks, we feel encouraged by the demand for our investment products, especially with regard to our physically secured staking ETPs,” explains CoinShares product manager Townsend Lansing.
The launch of the new investment product in Europe comes at a time when crypto regulation within the European Union (EU) is slowly taking on concrete features. Thus, the regulatory package Markets in Crypto Assets (MiCA) was almost finally adopted at the end of June. In this regard, Lansing notes:
“We see MiCA as a fantastic step towards transparent and comprehensive regulation for digital assets.“
In addition, the launch of the Algorand ETP comes shortly after CoinShares took over the French asset management Napoleon Asset Management on July 4. This not only secures CoinShares new investment products, but also an important license as an alternative investment fund in France.