CoinShares Rolls out New Physically-Backed Ethereum ETP

CoinShares, a leading digital asset manager in Europe, has just released a new Ethereum ETP. The Ethereum Electronically Traded Product is dubbed ‘CoinShares Physical Ethereum’ and bears the ticker ETHE.

Ethereum ETP is Less Risky for Institutions

CoinShares made this announcement yesterday via a press release. ETHE is the second product to be launched by CoinShares on its institutional platform. The first was a physically-backed Bitcoin ETP called ‘CoinShares Physical Bitcoin,’ with BITC as its ticker. ETHE is launching with nearly $75 million assets under management.

At launch, 1 unit of BITC was worth 0.03 Ether, which is around 50 USD today. This would give institutional investors the opportunity to earn from ETH without much risk. The ETP also allows them to trade Ethereum easily instead of trading with raw Ethereum, which is more stressful.

The ETP also has another advantage: it is cheaper. In a market where other Ethereum-based investments charge about 2%, CoinShares charges investors a base fee of 1.25% instead. ETHE will soon be available for trading, as it is yet to be listed on the Swiss Exchange, SIX. For now, SIX is the only exchange confirmed to list the coin. 

Ethereum’s Demand is Very High

Chief Revenue Officer Frank Spiteri says the product was launched in line with the increased demand for digital currencies “In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions.” He points out that investors have also shown interest in Ethereum, and this is why CoinShares has launched the ETHE. “We are encouraged by our clients..to guide them in their journey through the digital asset ecosystem,” Spiteri concludes.

Ethereum and Ethereum-backed products are making waves in the crypto space. ETH futures launched by the Chicago Mercantile Exchange (CME) generated an interest of $55 million in its first week alone. Ethereum itself is doing well, as it reached an all-time high of $2,016 on Saturday.