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Binance Partners with Amun to Launch BNB ETP on Swiss SIX Exchange

Cryptocurrency exchange Binance has partnered with Switzerland-based exchange-traded product (ETP) Amun to launch the Binance token (BNB) ETP. The BNB ETP is listed on the Swiss stock exchange, SIX under the ticker ABNB and is available for purchase through a bank or brokerage, like a stock.

Hany Rashwan, CEO of Amun said that the ETP will initially be backed by $20 million worth of BNB, accounting for almost a quarter of the firm’s total crypto assets under management.

Changpeng Zhao, CEO of Binance said in a statement:

“Our partnership with Amun in launching the BNB ETP will provide investors with a new and regulated asset class with a unique dimension to utility tokens, making them more accessible and reliable through a traditional financial infrastructure. This will provide traditional investors access with diversified exposure and segue into the global cryptocurrency market and its innovative products.”

BNB has been addressed as a utility token by Binance, however, the ABNB is an ETP which is a security, opening up to investors to buy into the “Binance ecosystem” without directly holding the exchange’s native token.

Rashwan added, “we are so excited to partner up with the world’s largest crypto exchange and make their native token accessible to institutional and retail investors in a secure, affordable, and regulated Swiss exchange-traded product.”

Stocks image via Shutterstock

DeFi Technologies Inc's Subsidiary Valour Owns over $274m in AUM

DeFi Technologies Inc announced Wednesday that its subsidiary Valour owns over $274 million in assets under management(AUM).

Valour had $274,229,000 in assets under management as of March 29. Valour issues digital asset exchange-traded products (“ETPs”) in Europe.

Valour’s net sales increased 205% sequentially, from $106.3 million in May 2021 to more than $324.5 million so far in March 2022. And launched two new products: Valor Avalanche (AVAX) ETP and Valor Terra (LUNA) ETP.

DeFi Technologies said Valour’s AUM would grow further in the future thanks to the joint ETP joint venture with SEBA Bank AG,

CEO Russell Starr said:

“Since listing our first product, Bitcoin Zero, on the Nordic Growth Market just over a year ago, we have seen an incredible reception to our ETP offerings. We are still in a very early growth stage. And our team has done a tremendous job of planting seeds for future growth by launching eight ETPs across several exchanges in Europe that enable individuals and institutions to invest in digital assets simply and securely.”

With more product launches, new exchange listings, a digital asset-backed program, and our joint ETP venture with SEBA Bank AG., the company said excitedly for the company’s growth trajectory in 2022 and the years to come.

The total value of ETPs currently under management by the company is as follows:

BTC Zero: $95,232,000
ETH Zero: $67,371,000
ADA Valour: $43,408,000
DOT Valour: $24,409,000
SOL Valour: $38,498,000
UNI Valour: $1,450,000
LUNA Valour: $2,605,000
AVAX Valour: $1,256,000

WisdomTree Adds Polygon and Avalanche to Crypto-Basket ETPs

WisdomTree Investments, Inc., a New York-based exchange-traded fund and exchange-traded product provider and asset manager, announced on Monday that it has added Polygon (MATIC) and Avalanche (AVAX) to indices at two physically backed crypto basket exchange-traded products (ETPs), the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

The firm added Polygon and Avalanche to the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

BLOC and WALT are already trading on the German stock exchange Börse Xetra, the France stock exchange known as ‘the Euronext Paris,’ Amsterdam stock exchange and the Swiss stock exchange SIX.

The two crypto ETPs have a sales pass for the whole European Union.

Alexis Marinof, head of Europe at WisdomTree, talked about the development: “Our crypto baskets are designed to give investors exposure to the changing environment of crypto assets. Additional coins such as MATIC and AVAX can be added to the indexes through quarterly resets. Before being included in our indexes, coins are evaluated by a committee, and they must meet several criteria, including sufficient liquidity levels, practical use cases, and significant mass.”

Marinof further elaborated: “Our monitoring and rebalancing allow investors to conveniently allocate some of our largest and most liquid investable crypto assets within a familiar structure without having to open or insure individual portfolios or any individual currency to stake.”

The BLOC is a free-float market capitalization-weighted ETP that offers exposure to a diversified basket of cryptocurrencies representing about 65% of the crypto market capitalization. The product is designed for investors who want broad exposure to the liquid and established assets of the crypto market. With the new additions, the basic BLOC index is now constituted of Bitcoin, Ethereum, Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche.

On the other hand, the WALT is a market capitalization-weighted free-float ETP that enables exposure to a diversified basket of altcoins. The ETP offers exposure to major crypto assets, excluding Bitcoin and Ethereum. It was designed for investors who already have exposure to these major cryptocurrencies and want to diversify their exposure without modifying their current holdings. With the new additions, the basic WALT index now consists of Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche.

WisdomTree said it added MATIC and AVAX to BLOC and WALT on August 19 after rebalancing the indices of the two crypto-basket ETPs.

Crypto ETPs Blossoming in Europe

The crypto ETP market in Europe is becoming more competitive than in North American and Latin America. Firms are issuing more varieties of crypto ETPs because of increasing demand.

In February, Fidelity International listed the Fidelity Physical Bitcoin ETP on Germany’s Deutsche Börse stock exchange and Switzerland’s SIX Swiss Exchange. The product is available to institutional clients and investment firms in Europe.

In March, WisdomTree launched three new crypto ETPs backed by Solana, Cardano, and Polkadot in Europe.

In 2019, WisdomTree launched its first crypto-asset ETP and has continued to build some diversified crypto baskets since then. WisdomTree has $200 million in assets under management in its crypto asset ETPs.

Franklin Templeton Floats Metaverse ETF for EU Investors

American multinational holding company and global investment firm Franklin Templeton has launched a metaverse-focused Exchange-Traded Product (ETP).

The ETP dubbed the Franklin Metaverse UCITS ETF will track the Solactive Global Metaverse Innovation Index GTR as it will seek to offer investors exposure to the burgeoning metaverse world.

Through the UCITS ETF, European investors will be able to gain exposure to companies with a vested interest in the metaverse world, or those planning to be involved. The new investment product is on track to be listed on the Deutsche Börse Xetra (XETRA) on September 7, and the Borsa Italiana and London Stock Exchange (LSE) on September 9, respectively.

The new fund will be headed and managed by the duo of Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.

“Society has already experienced three foundational changes in the way that technology operates and how it’s been delivered since the early 1970s. This exciting fourth wave is now emerging, enabled by blockchain technology,” Dina Ting said in a statement.

“Many big tech companies have already pivoted towards the metaverse for their next major area of development in the same way that many did at the inception of the internet. There appear to be tremendous real-world business opportunities for investment in this space considering that by 2030, the e-commerce market could grow between USD2.0–USD2.6 trillion.”

The Franklin Templeton metaverse ETP did not draft in companies that do not align themselves with the UN Global Compact Principles.

The company comes off as one of the major investment powerhouses that have offered investors an avenue to gain exposure to the metaverse world. Besides Franklin Templeton, ProShares, Fidelity Investments, Global X, ETC Europe, and Invesco are amongst the firms that have floated their own metaverse-linked ETPs in the past year.

21Shares Debuts First Physically-Backed Bitcoin ETP on Nasdaq Dubai

21Shares, a preeminent issuer of cryptocurrency exchange-traded products (ETPs), has announced the launch of its first physically-backed Bitcoin ETP in the Middle East.

The Middle East gets a physically-backed Bitcoin exchange-traded product following 21Shares Bitcoin ETP listing on Nasdaq Dubai.

With the physical back of Bitcoin ETP, meaning it’s endorsed by the underlying Bitcoin assets, they track with 1:1 leverage. Its underlying crypto assets are deposited in an offline wallet to insure better security. – according to 21Shares co-founder and CEO Hany Rashwan.

The investment product is listed on Nasdaq Dubai with the ticker: ABTC and is said to be 21Shares’ first entry into the Middle East.

“Our expansion into the UAE is a major milestone in 21Shares’ international growth plans,” said Hany. He added, saying 21Shares is committed to supporting the Middle East’s ambitions to become a global crypto hub.

In addition, Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), spoke about this news. He said 21Shares Bitcoin ETP on Nasdaq Dubai is yet another testament to “Dubai’s open, progressive, and innovation-first approach.”

For context, Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia.

According to the announcement, 21Shares latest crypto investment product on Nasdaq Dubai marks the firm’s 46 products across 12 exchanges in 9 countries.

21Shares’ ETPs have been listed on exchanges such as SIX Swiss, Deutsche Börse, EuroNext, BXSwiss, Wiener Börse, Quotrix, Gettex, Börse Stuttgart, Börse München, Börse Düsseldorf and until October 12, Nasdaq.

The announcement comes shortly after 21.co, the new parent firm of 21Shares, appointed Sherif El-Haddad as head of the MENA region in August.

In addition, recently, 21.co raised a total of $25 million to expand the firm globally and drive its market expansion into the Middle East, as reported by Blockchain.news.

On BX Swiss market, 21Shares launches crypto staking ETP

A cryptocurrency company by the name of 21Shares, which has its headquarters in Switzerland, is placing its bets on proof-of-stake (PoS) coins by launching a new cryptocurrency exchange-traded product (ETP) that is solely focused on staking. This decision was made in order to increase the company’s chances of success.

The business introduced a brand new exchange-traded product (ETP) on January 18th, which was given the name 21Shares Staking Basket Index ETP. It is a crypto staking index that is intended to monitor up to ten distinct Proof-of-Stake currencies simultaneously.

As a consequence of the merger with STAKE, 21Shares and its parent company, 21.co, now provide a combined total of 47 crypto exchange-traded product offerings (ETPs) to investors in 12 different markets and 9 different countries.

Despite this, the performance of the ETPs has been strong during the first few weeks of 2023, with the performance of AXTZ gaining 38% year-to-date and the performance of ASOL climbing 78% year-to-date respectively.

Krause highlighted that assets such as Solana, which is extensively related to the previous FTX exchange, have not had any influence on the goods that 21Shares has to offer and that this is something that he has been emphasizing throughout the conversation. He said that this is something that he has been highlighting throughout the conversation. As an example of what he meant, he said that “Solana, like practically all other crypto assets, had severe price drops in 2022 but did not suffer any fundamental damage that would bar its inclusion in the index.” This was said in order to demonstrate his argument. In particular, he was alluding to the assertion that “Solana did not suffer any fundamental degradation that would bar its inclusion in the index.”

The launch of STAKE on the market comes after a number of notable authorities from all around the world voiced their worries over the staking of cryptocurrencies.

Largest Weekly Inflows in Digital Assets in Over a Year, Led by Bitcoin

In a significant shift of sentiment, digital asset investment products experienced their largest single weekly inflows since July 2022, totaling a substantial $199 million, according to CoinShares report. This surge effectively corrected almost half of the prior nine consecutive weeks of outflows, signaling renewed investor confidence in the market.

Bitcoin emerged as the primary beneficiary, capturing a staggering $187 million in inflows last week, which accounted for an impressive 94% of the total funds. This surge in Bitcoin investment comes amidst one of the largest price surges in recent times, as the cryptocurrency experienced a remarkable 20% increase over the course of the week.

Conversely, short-bitcoin products continued to face outflows for the ninth consecutive week, with a total of $4.9 million withdrawn.

However, this positive sentiment did not extend to altcoins, as they only witnessed minor inflows. Ethereum, the second-largest cryptocurrency by market capitalization, attracted $7.8 million in inflows. Although this figure represented a mere 0.1% of assets under management (AuM) compared to Bitcoin’s 0.7% inflows, it indicated a relatively lower appetite for Ethereum in the current market.

The positive market shift was primarily attributed to recent announcements made by high-profile exchange-traded product (ETP) issuers. These issuers have filed applications for physically backed exchange-traded funds (ETFs) with the US Securities and Exchange Commission, generating renewed optimism among investors.

The total assets under management (AuM) for digital asset investment products now stand at an impressive $37 billion, reaching their highest point since before the collapse of 3 Arrows Capital.

While Bitcoin experienced significant inflows, outflows persisted for short-bitcoin products. Over the course of the past nine weeks, outflows accounted for 60% of the total AuM, further highlighting the divergence in investor sentiment.

Other altcoins, including XRP and Solana, saw only marginal inflows of $0.24 million and $0.17 million, respectively. However, the improved market sentiment did encourage some investors to explore multi-asset investment ETPs, resulting in $8 million in inflows during the previous week.

Overall, the surge in inflows into digital asset investment products, particularly Bitcoin, suggests a growing confidence among investors, possibly driven by the anticipation of new physically backed ETFs in the US market. While altcoins have yet to witness a substantial boost, the market remains dynamic, and investor preferences may shift as new opportunities emerge.

Bitwise Explores ETP Offering for Ethereum Layer-2 Networks

Bitwise, a leading name in cryptocurrency asset management, is looking to capitalize on the growth of Ethereum’s layer-2 networks and applications. The firm is contemplating the introduction of an Exchange Traded Product (ETP) that would provide investors with exposure to these cutting-edge technologies.

Matt Hougan, Bitwise’s Chief Investment Officer, has expressed a bullish stance on the potential of Ethereum’s layer-2 solutions. These solutions are designed to increase network scalability and reduce transaction fees, which have been significant hurdles for the main Ethereum blockchain. By moving some of the transactional load off the main Ethereum chain, layer-2 networks such as Optimism, Arbitrum, and zkSync aim to enhance the performance and user experience.

The consideration of an ETP dedicated to Ethereum’s layer-2 networks is indicative of the growing interest in decentralized finance (DeFi) and blockchain scalability solutions. An ETP of this nature would enable a broader investor base to gain exposure to the performance of these networks without the need to engage directly with the underlying technologies.

While the specifics of the ETP, including which layer-2 networks or applications it would target, remain uncertain, Bitwise’s exploration into this space reflects a strategic move. The selection process would likely involve a careful analysis of the various layer-2 solutions’ adoption rates, technological robustness, and potential for growth.

The development of Ethereum’s layer-2 ecosystem has been rapid, with numerous projects launching in recent years. These networks are essential for Ethereum’s long-term success, as they provide the scalability needed for widespread adoption of decentralized applications (dApps). Bitwise’s potential ETP offering could serve as a significant endorsement for Ethereum’s layer-2 networks, signaling confidence from institutional players in the scalability and utility of these solutions.

However, the path to launching such an ETP involves navigating a complex regulatory environment. The Securities and Exchange Commission (SEC) and other regulatory bodies have been cautious in approving cryptocurrency-related investment products, with concerns over market volatility, investor protection, and regulatory oversight.

Despite these challenges, the interest in Ethereum’s layer-2 networks continues to rise, and an ETP could be a game-changer for institutional and retail investors alike. Bitwise’s exploration in this area could pave the way for other asset managers to consider similar offerings, further integrating cryptocurrency into traditional investment portfolios.

As the Ethereum network gears up for its next phase of development with the anticipated upgrades and the increasing prominence of layer-2 solutions, Bitwise’s potential ETP could be at the forefront of a new wave of cryptocurrency investment products. With layer-2 solutions addressing key barriers to blockchain adoption, the future looks promising for both Ethereum’s ecosystem and forward-thinking asset managers like Bitwise.