Published: March 07, 2024 at 5:30 am Updated: March 07, 2024 at 5:30 am
Edited and fact-checked:
March 07, 2024 at 5:30 am
In Brief
Figment Europe and Apex Group will launch Ethereum and Solana staking ETPs on SIX Swiss Exchange through Issuance.Swiss AG on March 12th.
Staking infrastructure service provider Figment Europe and financial services provider Apex Group will introduce Ethereum (ETH) and Solana (SOL) staking Exchange Traded Products (ETPs) on the Swiss stock exchange SIX Swiss Exchange through Issuance. Swiss AG is scheduled for launch on March 12.
The Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF) products are designed to provide institutional investors with convenient access to staking rewards, facilitating engagement through traditional brokers or banks within a recognizable ETP framework.
“The popularity and interest in ETH and SOL has increased substantially over the past few months. However, it is still challenging for institutions to buy crypto and stake it directly. The ETPs will contribute to increased accessibility to staking rewards for a wide audience,” said Josh Deems, Institutional Business Development Lead of Figment.
The Ethereum and Solana staking ETPs aim to simplify institutional access to staking rewards derived from proof-of-stake (PoS) assets. By adopting an ETP structure, the product leverages full collateralization and over 50% staking utilization, ensuring returns to investors. This approach enables institutions to securely hold this asset class via an ETP, eliminating the need for direct funding of Ethereum or Solana validators.
In addition to offering exposure to the core cryptocurrency assets, the staking rewards generated through the ETPs encompass maximal extractable value (MEV)–the maximum value validators can extract during block production, which can potentially be passed on to stakers.
The issuance of Figment’s ETP will be managed by Issuance.Swiss, a financial product issuance solution provided by Apex Fund Services. Both Figment ETPs are subject to a management fee of 1.5%. Consequently, the product envisions providing a competitive rewards rate, expecting that 50% or more of the underlying asset will be staked and reinvested by the issuer back into the ETP.
Figment aims to become the preferred staking solution for institutions overseeing cryptocurrency assets, providing effortless accessibility through custodians, exchanges and portfolio management systems. The company’s current emphasis lies in refining its ETPs, specifically focusing on providing staking services tailored to Swiss institutions.
Growing Institutional Interest in Crypto Investments
Following the successful launch of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year, there is growing interest in the possibility of spot Ehereum ETFs emerging next. Several asset management firms, including BlackRock, Fidelity, and Franklin Templeton, have submitted applications for a spot in Ethereum ETF in recent months. However, there are varied opinions on the likelihood of approval from the Securities and Exchange Commission (SEC) this year.
The potential approval process for spot Ethereum ETFs could mirror that of CME futures and futures ETFs, which preceded the approval of Bitcoin spot ETFs in the United States. However, the likelihood of spot ETFs for Solana or other cryptocurrency assets gaining approval in the near term appears to be limited.
Recently, Cathie Wood, the CEO and Chief Information Officer (CIO) of ARK Invest, voiced scepticism about the SEC approving spot ETFs for cryptocurrencies other than Bitcoin and Ethereum. During an interview with the Wall Street Journal, she remarked, “We would be surprised if any currency other than Bitcoin and Ethereum received SEC approval.”
Figment’s recent introduction of Ethereum and Solana staking ETPs marks a strategic move to simplify institutional access to staking rewards, while broader adoption of other spot cryptocurrency ETFs faces varying opinions and scepticism.
About The Author
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]
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Alisa Davidson
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]
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