CoinShares has launched a solana exchange-traded product (ETP) which will share staking rewards with investors.
The CoinShares FTX Physical Staked Solana ETP (SLNC) is listed on the Deutsche Boerse with a total expanse ratio (TER) of 1.50% which has the potential to be offset by staking rewards.
It added investors could earn an additional yield of 3% through staking rewards to be distributed at its discretion.
Staking enables issuers to boost the returns of some ETPs by contributing their coins to large pools of assets in exchange for rewards. This can then be passed on to the investor via additional returns or a reduction in the management fee.
What is staking? How issuers boost returns in crypto ETPs
It is the fourth staked product launched by CoinShares after it unveiled the CoinShares Physical Staked Cardano ETP (CSDA) earlier this month and is the first launched in partnership with the FTX cryptocurrency exchange.
This followed the CoinShares Physical Staked Tezos ETP (XTZS) and the CoinShares Physical Staked Polkadot ETP (CDOT) launched in January.
Frank Spiteri, chief revenue officer at CoinShares, said: “The feedback on our growing suite of innovative staked ETPs has been overwhelmingly positive, and collaborating with FTX to create the first Solana ETP with transparent staking rewards for investors allows us to double down on our commitment to providing investors with best-in-class regulated crypto products.
“Solana is one of the most requested exposures amongst our clients and SLNC is launching with €1m SOL in assets under management, a level that meets institutions and corporates baseline for investment consideration.”
It brings the total number of ETPs launched on the CoinShares platform to eight.
SLNC is the second staked solana product to hit the market after 21Shares launched the Solana (SOL) ETP (ASOL) last June with a TER of 2.5%.