CoinShares, FTX Collaborate to Launch Physically-Backed Solana ETP
Key Insights:
- Coinshares and FTX have launched physical stacked Solana ETP.
- The ETP will launch with 1 million SOL in seed capital.
- Investors can earn an additional yield of 3% through staking rewards.
Crypto investment firm CoinShares has joined hands with digital asset exchange FTX to launch a physically-backed Solana exchange-traded product (ETP).
Per a Wednesday announcement, The ETP will allow investors to earn a 3% in staking rewards and a reduced management fee of 0.0% p.a. The ETP will launch with 1M SOL in seed capital, the company said.
Your capital is at risk
Staking is a process that involves committing a portion of investors’ crypto assets to support a blockchain network and validate transactions. By doing so, participants earn rewards on their holdings.
Dubbed CoinShares FTX Physical Staked Solana, the product marks the fourth ETP launched by CoinShares this year, after physical-staked Polkadot and Tezos ETP in January, followed by Cardano ETP early this month.
The Solana product will be listed on Germany’s primary market Xetra like the previous crypto ETPs. It leverages Galata, CoinShares’ proprietary technology platform.
Sam Bankman-Fried, CEO of FTX, noted,
“We only want to launch products that are genuinely innovative and add value to our clients,”
FTX Stepping Foot Globally
The FTX crypto exchange has been establishing a base in major economies worldwide.
For instance, the company recently launched its presence in Europe and the Middle East, bringing its range of crypto products and services to those customers. The company has acquired approval from Cyprus Securities and Exchange Commission (CySEC) for operating in the countries.
In February, the exchange entered Japan with plans to migrate all its Japanese users to Quoine while also integrating its products and services on the platform.
The Prime Minister of Dubai issued the Dubai Virtual Regulation Law to FTX that clarified that any enterprise must have a presence in Dubai and obtain a license from the Dubai Virtual Asset Regulatory Authority (VARA). Following this, FTX has become the first to receive a crypto license from Dubai.
Solana Price Outlook
At the time of writing, Solana (SOL) was trading at $95.0450, and the crypto is quickly moving towards $100. The crypto is up 2.01% in the last 24 hours and currently ranks 9, according to CoinMarketCap.
The trading volume has been sustainable throughout this rally, which allowed the cryptocurrency to approach the $100 target.