CoinShares has launched two staked exchange-traded products (ETPs) tracking commos and polygon cryptocurrencies.
The CoinShares Physical Staked Cosmos ETP (COMS) and the CoinShares Physical Staked Matic (CPYG) are listed on the Deutsche Boerse total exchange ratios (TERs) of 1.50% which has the potential to be offset by staking rewards.
It added investors could earn an additional yield of 5% 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.
It is the issuer’s fifth and sixth staked product after it unveiled the CoinShares FTX Physical Staked Solana ETP (SLNC) in March.
The firm also launched the CoinShares Physical Staked Cardano ETP (CSDA) in the same month, which followed the CoinShares Physical Staked Tezos ETP (XTZS) and the CoinShares Physical Staked Polkadot ETP (CDOT) that launched in January.
Frank Spiteri, chief revenue officer at CoinShares, said: “With CoinShares’ staked ETPs, investors are gaining exposure not only to the price of the underlying cryptocurrency, but also the additional yield associated with participating in that blockchain’s security.”
It could be seen as an interesting time to launch a crypto ETP as the broader market continues to feel the pain, with many predicting a ‘crypto winter’.
Despite rising back above its $20,000 milestone, there is no sign of respite for bitcoin which continues to face macro and micro headwinds, dragging down other cryptocurrencies in the process.