- CoinShares and FTX are joining forces to launch a new physically-backed Solana (SOL) exchange traded product (ETP).
- The new product will be titled CoinShares FTX Physical Staked Solana, and will be launching with 1 million SOL in seed capital.
- The new CoinShares ETP will incorporate the same unique staking mechanism as its previously launched ETPs.
CoinShares, one of the largest cryptocurrency investment firms in Europe, has joined forces with cryptocurrency exchange FTX to launch a new physically-backed Solana (SOL) exchange-traded product (ETP).
The new product will be named CoinShares FTX Physical Staked Solana, and will be launching with 1 million SOL in seed capital. This will allow investors to get 3% staking rewards, according to an official announcement made on Wednesday. The new cryptocurrency ETP is the first initiative between CoinShares and FTX.
The news comes shortly after FTX officially announced its expansion in Europe earlier in March after receiving the necessary approval from the Cyprus Securities and Exchange Commission.
The product will be listed on Xetra, which is Germany’s major digital market, and is the fourth ETP rolled out by CoinShares in 2022. The last ETP rolled out by CoinShares was its Physical Staked Cardano ETP that was launched earlier this year in March. The two previous ETPs were CoinShares’ Physical Staked Polkadot ETP and Physical Staked Tezos ETP in January.
The new CoinShares FTX Physical Staked Solana, similar to CoinShares’ previously launched ETPs, will incorporate a unique staking mechanism. With this mechanism, issuers will be able to share staking rewards with investors by reducing the management fee and increasing the coin entitlement of the ETP each day.
Sam Bankman-Fried, CEO of FTX, noted that the latest ETP launch follows the successful launch of FTC Access – a tool that combines the expertise behind FTX and FTX US to provide institutional clients access to digital asset products.