CoinShares has extended its range of staked exchange-traded products (ETPs) with the launch of an algorand ETP.
The CoinShares Physical Staked Alogrand ETP (RAND) is listed on the Deutsche Boerse with a total exchange ratio (TER) of 1.50%, which has the potential to be offset by staking rewards.
It added investors could earn an additional yield of 2% through staking rewards to be distributed at its discretion.
The process of staking allows investors to earn an additional yield on top of their returns by the issuer contributing its coins to a large pool of assets in exchange for rewards.
This is either passed on to the investor via a reduction in the management fee or by a daily increase of the coin entitlement of the ETP.
RAND is the issuer’s seventh staked product after it unveiled the CoinShares Physical Staked Cosmos ETP (COMS) and the CoinShares Physical Staked Matic (CPYG) in June.
Townsend Lansing (pictured), head of product at CoinShares, said: “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.”
He added the algorand staked ETP was part of the firm’s long-term strategy.
It comes after the European Commission finalised the Markets in Crypto Assets (MiCA) regulation that will seek to tame the ‘wild west’ reputation the industry has developed.
“We are excited to be launching against the backdrop of positive regulatory news following the finalisation of MiCA in Europe, which we see as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets,” he added.
Last week, CoinShares acquired Napoleon Asset Management, the first crypto asset manager regulated by the Alternative Investment Fund Managers Directive (AIFMD).