CoinShares has launched a cardano exchange-traded product (ETP) which will share staking rewards with investors.
The CoinShares Physical Staked Cardano ETP (CSDA) is listed on the Deutsche Boerse with a total expense ratio of 1.5% 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 allows investors to contribute their assets to a large pool of digital currency, which then accrues additional yield by validating transactions on the relevant network. This can then be passed on to the investor via additional returns or a reduction in the management fee.
The firm added all staked coins do not move from the custodian and remain 100% physically backed.
CSDA is the firm’s third staked coin after it unveiled the CoinShares Physical Staked Tezos ETP (XTZS) and the CoinShares Physical Staked Polkadot ETP (CDOT) in January.
It brings the total number of ETPs launched on the CoinShares platform to seven.
Townsend Lansing, head of product at CoinShares, said: “We are excited to add cardano to our range of physically-backed staked products.
“This is the first cardano ETP in the world to feature transparent staking rewards for investors, and we look forward to launching more digital asset ETPs with best-in-class structures in the coming months.”
Last June, 21Shares launched the Solana (SOL) ETP (ASOL) which provided additional yield to investors through staking rewards by validating transactions on the solana blockchain.