ETC Group has more than doubled its roster of cryptocurrency exchange-traded products (ETPs) with five digital asset exposures.
Physically-backed, the five ETPs are set to list on the Deutsche Boerse later this month with total expense ratios (TER) of 1.95%. The ETPs are:
- DOTetc ETC Group Physical Polkadot (PLKA)
- SOLetc ETC Group Physical Solana (ESOL)
- XLMetc ETC Group Physical Stellar (STLR)
- XTZetc ETC Group Physical Tezos (EXTZ)
- ADAetc ETC Group Physical Cardano (RDAN)
PLKA tracks polkadot’s dot governance token, with polkadot itself having a sharded heterogenous multi-chain, which allows external networks and customised layer one 'parachains’ to communicate and create a connected internet of blockchains.
ESOL tracks solana’s native currency, which goes by the same name. The solana protocol provides decentralised finance solutions (DeFi) using its third-generation proof-of-stake blockchain that creates a permissionless system for determining transaction time called proof-of-history. This has a block time of 400 milliseconds versus ten minutes per block for bitcoin.
STLR tracks Stellar’s Lumen token, or XLM. Stellar is an open-source, decentralised protocol for digital currency to fiat transfers, with XLM powering the protocol’s payments network.
EXTZ tracks to price of tezos' digital token, tez. Tezos is a smart contract blockchain network that focuses on security and scale for large transactions.
Finally, RDAN tracks the price of cardano’s native platform token, ADA. Having gone from a niche asset to one of the largest cryptocurrencies in terms of market cap, cardano ADA’s blockchain is based on the ouroboros proof-of-stake consensus protocol, which is currently the largest of its type in the world.
Cardano has a settlement layer and a computation layer and is designed to facilitate peer-to-peer transactions without high energy costs.
Bradley Duke, co-CEO of ETC Group, commented: “Investors in digital assets are becoming more sophisticated and demanding with an appetite for exposure beyond just bitcoin and ether.”
Hector McNeil, co-CEO and co-founder of HANetf, who market and distribute the products, added: “Interest in ETPs has been booming as they provide investors with a safe and liquid way to gain exposure to digital assets.”
Last month, the two firms partnered on a thematic ETF, the ETC Group Digital Assets & Blockchain Equity UCITS ETF (KOIN), which was ETC Group’s first equity-based product.