CoinShares Launches Physically-Backed Litecoin ETP
- Each unit of the Litecoin ETP (LITE) will be backed with 0.20 LTC at launch.
- LITE is the third physically-backed ETP CoinShares launched this year, following a BTC and ETH product.
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According to a press release published on 6 April, the CoinShares Physical Litecoin ETP (LITE) is the company’s seventh investment product. Exchange-traded products (ETP) are types of securities that track the underlying security, index, or financial instrument and are traded on exchanges similar to stocks.
CoinShares currently has over $4 billion of assets under management and is Europe’s largest digital asset investment house. Approximately two-thirds of its assets represent exposure to Bitcoin, while the remaining third offers investors access to Ethereum.
Each unit of the Litecoin ETP will be backed with 0.20 LTC at launch, providing investors with passive exposure to the cryptocurrency. LITE will initially be listed on the SIX Swiss Exchange and have a base fee of 1.50% per annum.
Townsend Lansing, the head of product at CoinShares, said that the company was excited to offer exposure to a “well-accepted and widely traded” cryptocurrency to its product line.
“LITE comes hot on the heels of our Bitcoin and Ethereum product launches in 2021 and will benefit from the same robust and transparent physically-backed product structure,” he said.
The company’s chief revenue officer Frank Spiteri said that LITE was an answer to an increased demand for investment exposures outside of the top two dominant networks. A number of new products are set to be launched on CoinShares in the coming year to meet this growing demand.
- Napoleon Asset Management was amongst the first to be licensed under AIMF, giving it passporting permission to market products and services across the EU.
- The acquisition will also expand CoinShares’ products with algorithmic trading and artificial intelligence tools developed by Napoleon.
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- Europe’s largest digital asset investment firm has become the latest member of the Pyth Network.
- CoinShares will contribute real-time pricing data to the network, eliminating the need for intermediaries.
- CoinShares will acquire Elwood’s entire issued capital for $17 million.
- Elwood’s equity research team will join CoinShares, but not changes will be implemented to the Elwood Index or the Invesco Blockchain ETF.