CoinShares bolsters staked ETP lineup with Algorand launch

Rhea-AI Summary

CoinShares, a leading digital asset investment firm, announced the launch of its physically-backed staked Algorand ETP, listed on Germany's Xetra. This ETP, utilizing CoinShares' Galata technology, features a 0.0% p.a. management fee and 2.0% p.a. staking rewards, with approximately US$4.6mn in assets under management. This launch aligns with recent positive regulatory developments in Europe, promoting a transparent digital asset framework. CoinShares aims to enhance investor access and trust in the digital asset ecosystem.

Positive

• Launch of CoinShares Physical Staked Algorand ETP with 0.0% management fee.
• Staking rewards of 2.0% p.a. for investors.
• Approx. US$4.6mn in assets under management at launch.
• Positive regulatory developments in Europe enhancing market confidence.
• Acquisition of Napoleon Asset Management broadens product offerings.

Negative

• None.

100% physically backed ETP launches with approximately US$4.6mn in AUM, 0.0% p.a. management fee and 2.0% p.a. staking rewards

SAINT HELIER, Jersey, July 14, 2022 /PRNewswire/ -- CoinShares ("the Company") (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF), Europe's largest digital asset investment firm with US$1.5bn* in AUM, today announced the listing of their physically-backed staked Algorand ETP on Germany's primary market Xetra.

CoinShares Physical Staked Algorand (Ticker: RAND) is the latest ETP to leverage CoinShares' proprietary technology platform, Galata, which allows investors to benefit from the rewards associated with participating in the Algorand blockchain's security.

CoinShares Physical Staked Algorand

• Management Fee: Reduced to 0.0% p.a.
• Staking Reward: 2.0% p.a.
• ISIN: GB00BNRRF105
• Ticker: RAND
• WKN: A3GY74

Launched in 2019, Algorand is often described as the first Pure Proof of Stake (PPoS) blockchain. In contrast to most Proof of Stake (PoS) networks, any network participant can be a validator and the minimum stake required is relatively small (0.1 ALGO). Validators can secretly select themselves to participate in consensus, which can help preserve privacy and protect against attacks. With a focus on sustainability, Algorand is one of the few carbon-negative blockchains and has been since 2021.

Townsend Lansing, CoinShares' Head of Product, commented on the news, "Despite the volatility seen across digital asset markets in recent weeks, we are encouraged by the demand we're seeing for our products, especially our range of bankruptcy-remote, physically-backed staked ETPs. An Algorand ETP with additional staking rewards was a key part of our long-term product strategy, and we are excited to be launching against the backdrop of positive regulatory news following the finalisation of the Markets in Cryptoassets Regulation in Europe, which we see as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets."

According to their website, CoinShares' Staked ETPs are built to allow the Issuer to share staking rewards with investors by both a) reducing the management fee and b) increasing the Coin Entitlement of the ETP each day, as staking awards accrue. Staked coins do not move from the secure custodian where they are stored, and the ETPs remain 100% physically backed at all times.

The Issuer formally announced on July 14, 2022 a reduction in the management fees to 0.0% p.a. and additional Staking Rewards of 2.0% for CoinShares Physical Staked Algorand.

CoinShares made headlines last week after announcing the acquisition of Napoleon Asset Management, the first AIFM-regulated crypto asset manager, regulated under the Alternative Investment Fund Managers Directive (AIFMD). The acquisition allows CoinShares to offer AIFMD-compliant products and services, in addition to its market-leading position as an issuer of crypto ETPs.

*As of July 12, 2022

About the CoinShares Group

CoinShares is Europe's largest digital asset investment firm, managing billions of assets on behalf of a global client base. Our mission is to expand access to the digital asset ecosystem by pioneering new financial products and services that provide investors with trust and transparency when accessing this new asset class. CoinShares is publicly listed on the Nasdaq First North Growth Market under ticker CS and the OTCQX under the ticker CNSRF.

To learn more about CoinShares, please visit: www.coinshares.com

CoinShares Media Contact
Jay Morakis
+1 646 859 5951
press@coinshares.com

Certified Advisor
Mangold Fondkommission AB
+46 (0)8 503 015 50
ca@mangold.se

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/coinshares-bolsters-staked-etp-lineup-with-algorand-launch-301586411.html

SOURCE CoinShares Group

FAQ

What is the significance of the CoinShares Physical Staked Algorand ETP launch on July 14, 2022?

The launch marks CoinShares' entry into the staked ETP market, offering investors a 0.0% management fee and 2.0% staking rewards.

How much assets under management does the new CoinShares ETP have?

The CoinShares Physical Staked Algorand ETP launched with approximately US$4.6mn in assets under management.

What are the staking rewards for the CoinShares Physical Staked Algorand ETP?

Investors can benefit from staking rewards of 2.0% per annum.

What regulatory changes support the launch of CoinShares' new ETP?

The launch follows positive regulatory news from Europe regarding the Markets in Cryptoassets Regulation.

What is CoinShares' strategy with the new Algorand ETP?

The Algorand ETP is part of CoinShares' long-term strategy to offer bankruptcy-remote, physically-backed ETPs to investors.