ETC Group is shutting two exchange-traded products (ETPs) tracking cryptocurrencies polygon and polkadot due to low demand.
In a shareholder notice, ETC Group issued mandatory redemption notices for the ETC Group Physical Polkadot ETP (PLKA) and the ETC Group Physical Polygon ETP (MTCE)
Under the terms of the ETPs, ETC Group holds the right to terminate the products after 90 consecutive days of trading with less than $100m assets under management (AUM).
Following the mandatory redemption notice, which was issued on 27 August, investors had 20 days to redeem their assets.
ETC Group said it would inform shareholders in the ETPs it is auctioning the products’ underlying assets “around 40 days” after issuing the redemption notices, with more details on these auctions to be provided on the company website.
PLKA launched in December 2021 while MTCE was unveiled in March 2022.
Last December, the firm closed its bitcoin cash, stellar, tezos and uniswap ETPs amid low demand for individual small-cap coins.
Earlier this year, it launched the first crypto ETP to track an MSCI index, the ETC Group MSCI Digital Assets Select 20 ETP (DA20).