CoinShares, a digital asset manager, has announced the launch of a new exchange-traded product (ETP) that will track the FTX token and will debut on Germany’s exchange Xetra, with a seed capital of approximately $40 million.
The ETP is the second to be launched as a result of a collaboration between CoinShares and FTX. Earlier this year, the two announced the creation of a physically-backed Solana ETP, which let investors participate in SOL staking rewards.
FTT prices rose 1.7 percent shortly following the announcement, indicating that the move was well-received. However, the new ETP may signal that FTT may gain even more ground.
A wide range of investors can now invest in FTT thanks to the new ETP. Without purchasing tokens, equity-focused investors can now obtain exposure to cryptocurrency. This could entice a wave of institutional traders wanting to get in on the action.
The FTX crypto exchange’s native token, FTT, is used to facilitate transactions on the exchange. Its price changes also give us some insight into FTX’s trading volumes. As a result, investors interested in FTX can purchase the token, as the exchange does not have publicly traded shares.
This is Coinshares’ fifth crypto-related product launch this year. The move coincides with an increase in institutional interest in tokens other than Bitcoin and Ethereum.
However, because the US has yet to authorize a spot crypto product, ETPs that directly follow crypto prices are restricted to non-American countries. ETPs that directly follow crypto prices are restricted to non-American countries.
