Institutions are steadily warming up to Solana (SOL).
Solana ETP to Go Live in Switzerland
Swiss investment product provider 21Shares is poised to launch the world’s first Solana exchange-traded product (ETP), a report by Coindesk says. The vehicle, which is currently trading under the “ASOL” ticker will be live for trading from June 29 onwards.
Previously known as Amun, 21Shares recently stated the Solana ETP will list on Switzerland’s primary stock exchange, the Swiss SIX.
For the uninitiated, Solana has emerged as one of the biggest rival smart contract platforms to Ethereum courtesy of its high throughput, low latency, and minimal transaction fees.
Backed by Sam Bankman-Fried, the CEO and founder of crypto derivatives exchange FTX and Alameda Research, SOL is currently the 14th largest cryptocurrency by market cap, according to data on CoinGecko.
Recently, the Solana ecosystem received a significant shot in the arm as it raised more than $300 million in a token sale co-led by Andreessen Horowitz and Polychain Capital.
Notably, the 21Shares ETP will offer investors exposure to the Solana blockchain and track the performance of its SOL. Each unit of the ETP will be backed by 0.667 SOL at launch with a base fee of 2.5% per annum.
21Shares added the Solana ETP structure is physically collateralized, segregated, and replicates 1:! the tracking of the underlying digital asset.
Europe Leads the Crypto ETP Race
While the U.S. financial watchdogs are still mulling the approval of a crypto ETP, their European counterparts, to date, have approved multiple crypto ETPs to give investors safe, and regulated exposure to crypto assets in a seamless manner.
Notably, 21Shares has appointed Coinbase Custody as the SOL ETP’s main custodian.
“These new ETPs deliver what clients asked for,” 21Shares CEO Hany Rashwan said in a statement. “We expect to add two new crypto ETPs in the next months together with new listing and trading venues.”
In similar news, BTCManager reported on May 13 that German investment firm Iconic Funds had listed a physical Bitcoin ETP on the Deutsche Boerse Xetra exchange in a bid to give institutional clients exposure to the premier cryptocurrency.