Switzerland-based protocol Liqwid Finance is listing a Cardano Staking exchange-traded product (ETP) on the SIX Swiss Exchange today.
The product will trade under the ticker symbol “CASL” and is being issued with Issuance.Swiss AG and will be accessible to all kinds of investors from today.
In an announcement, Liqwid Capital said the CASL ETP captures the performance of the underlying cryptocurrency “ADA” which is managed by the Cardano Foundation and the interest earned by staking the token.
“With CASL, we want to take a new step. One that will bridge the gap between traditional and digital asset management. Until now, most of the financial instruments available to investors in the crypto universe gave them access to developments in the underlying assets, Bitcoin, Ethereum, ADA, etc.” said Florian Volery, co-founder of Liqwid Finance, in a press release.
“We’re going one step further, by putting ADA’s outstanding assets to work and redistributing the interest to investors. Investors benefit from a double return on their investment, as well as lower management fees (1.5%) than the average of competing products,” added Volery.
More ETPs Being Listed in Europe
On Tuesday, Figment Europe Ltd, a provider of institutional staking infrastructure, and Apex Group listed two crypto ETPs on the SIX Swiss Exchange.
The “Figment Ethereum Plus Staking Rewards” ETP is trading under the ticker symbol “ETHF” and the “Figment Solana Plus Staking Rewards” ETP is trading under the ticker “SOLF.” The products are fully backed by Ethereum and Solana, respectively, using Figment’s staking infrastructure
“Unprecedented Demand” From Institutional Investors
According to crypto product providers, there is unprecedented demand for crypto ETPs and it remains a challenge for institutions to buy crypto and stake directly. During the most recent crypto bear market, many ETPs faced closure.
For example, in March 2023, ETP provider 21Shares started delisting its Terra ETP and terminated five other crypto ETPs due to low investor demand. The ETPs had only been open for less than a year.
European Market Leads the Way With ETPs
Earlier this year, the U.S. Securities Exchange Commission (SEC) approved almost a dozen spot Bitcoin exchange-traded funds (ETFs) which has in turn triggered a bull market and trading frenzy.
In Europe, many issuers have successfully listed numerous cryptocurrency ETPs over the years ago giving investors exposure to Bitcoin and Ethereum. Major crypto ETP providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour and Fidelity.
