European digital asset supervisor CoinShares has launched a immediately backed litecoin exchange-traded product in Switzerland.
Litecoin is an early spinoff from bitcoin and presently the world’s eighth-largest crypto asset by market cap.
Listed on SIX Swiss Trade, the CoinShares Bodily Litecoin (LITE SW) is accessible for institutional traders to commerce in US {dollars}, euros, or Swiss francs.
Litecoin, presently the world’s eighth-largest crypto asset by market cap, originated in October 2011 as an early spinoff from bitcoin. It’s just like bitcoin in that it has a hard and fast provide (programmed to be 4 occasions the eventual provide of bitcoin) and undergoes common block reward ‘halvings’.
The primary distinction between the 2 cryptocurrencies is that litecoin delivers a quicker block technology time of two and a half minutes (in comparison with ten minutes for bitcoin). This characteristic has established litecoin because the go-to cryptocurrency for customers in search of to conduct transactions rapidly.
Every unit of LITE is “bodily” backed with 0.20 litecoins at launch, offering traders with direct publicity to the cryptocurrency with the added oversight, safety, and liquidity of an ETP.
The ETP’s bitcoin holdings are custodied by Komainu, a hybrid institutional-grade digital asset custodian designed particularly for monetary service suppliers and blue-chip corporates.
Komainu is a three way partnership between international funding financial institution Nomura, digital asset safety specialist Ledger, and CoinShares.
The ETP comes with a administration payment of 1.50%.
LITE is CoinShares’ third immediately backed crypto ETP and follows from merchandise which are 100% backed by precise bitcoin or ethereum holdings. The CoinShares Bodily Bitcoin ETP (BITC SW) has $370 million in belongings and comes with a administration payment of 0.98%, whereas the CoinShares Bodily Ethereum (ETHE SW) homes $90m and prices 1.25%.
Frank Spiteri, Chief Income Officer at CoinShares, stated: “As demand for digital belongings amongst the standard funding neighborhood steadily will increase, we’re beginning to see the inexperienced shoots of demand for funding exposures outdoors of the highest two dominant networks. CoinShares is the chief in creating novel methods for traders to entry the digital asset ecosystem, and LITE is the subsequent step on a path to bringing a extra complete and diversified providing of ETPs to market.”
Townsend Lansing, Head of Product at CoinShares, added: “LITE comes scorching on the heels of our Bitcoin and Ethereum product launches in 2021 and can profit from the identical strong and clear bodily backed product construction. We’re excited so as to add publicity to such a well-accepted and extensively traded crypto-asset to our new product line.”
CoinShares additionally provides eight single-asset crypto merchandise offering publicity to bitcoin, ethereum, litecoin, and ripple in both Swedish krona or euro buying and selling traces. The suite is delivered by means of the agency’s XBT Supplier platform, with merchandise listed on Nasdaq Stockholm and the Nordic Progress Market. These merchandise use artificial replication by means of monitoring certificates to realize publicity to cryptocurrency markets.
