The new Algorand ETP joins the family of staked ETPs offered by CoinShares that include the cryptocurrencies DOT, XTZ, ADA, SOL, ATOM, and MATIC.
CoinShares, a significant European cryptocurrency investment firm, is adding a new physically-backed ETP built on the Algorand platform to its lineup of exchange-traded products (ETP).
On Thursday, CoinShares announced that their physically-backed staked Algorand ETP has been listed on Xetra, the online trading system operated by German exchange operator Deutsche Boerse.
The new cryptocurrency investment product, known as the CoinShares Physical Staked Algorand, will trade on Xetra under the ticker RAND. The ETP, which is made possible by CoinShares’ in-house technology platform Galata, enables investors to gain from the 2% staking rewards linked to taking part in Algorand’s blockchain security.
The new Algorand ETP is the latest addition to CoinShares’ family of staked ETP products, which already includes Polkadot (DOT), Tezos (XTZ), Cardano (ADA), Solana (SOL), Cosmos (ATOM), and Polygon as well as blockchain networks and cryptocurrencies (MATIC).
The Algorand blockchain, developed in 2017, is a decentralized network and architecture that aims to enable a better proof-of-stake (PoS) blockchain known as the pure PoS. (PPoS). With a stake of just 0.1 Algo (ALGO), or $0.03, any network member can become a validator, in contrast to many PoS networks.
The introduction of the CoinShares Physical Staked Algorand coincides with the market’s continued bear market and recent period of severe volatility, with a total market capitalization below the $1 trillion thresholds.
“Despite the volatility seen across digital asset markets in recent weeks, we are encouraged by the demand we’re seeing for our products, especially our range of bankruptcy-remote, physically-backed staked ETPs,” CoinShares head of product Townsend Lansing said.
According to Lansing, the launch also coincides with good regulatory news with the completion of the Markets in Crypto Assets (MiCA) legislation in Europe in late June. He continued:
“We see [MiCA] as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets.”
Soon after CoinShares announced on July 4 that it had acquired Napoleon Asset Management, the Algorand ETP was released. In addition to its dominant position as an issuer of cryptocurrency ETPs, the acquisition allowed CoinShares to offer goods and services that are compliant with the Alternative Investment Fund Managers Directive.