According to a blog post shared by CoinShares, the investment firm has joined hands with the popular crypto exchange platform FTX. To mark the integration, the firms will be jointly launching a Solana exchange-traded product carrying 1 million SOL in seed capital. This asset is physically backed and is designed to share the rewards and profits from staking between investors. More importantly, the Solana ETP will acquire 3% per year from staking rewards for absolutely 0% management cost.
FTX.COM is one of the forerunners of crypto exchanges currently. This crypto exchange seems to have had a great run in the last three years, bringing its market capitalization to $18 billion. This platform was built specifically to enhance the trading environment of digital assets by introducing new and innovative products. It is already home to some of the leading fintech, tokenized, or volatility products in the industry. FTX exchange currently supports nearly 300 cryptos as of now, hoping to utilize them for trading purposes. In addition, the platform offers to trade in derivatives, futures, and stocks as well.
The new venture of the exchange comes with a strategic partnership with CoinShares, and the NASDAQ-listed digital assets investment company from Europe. This partnership was formed as a part of FTX’s intention to bring institutional investors to the digital economy. The platform already launched the FTX Access, which is designed to enhance the institutional trading environment with insights on indexing, products, and trade execution. Moreover, the initiative would also provide institutions with the necessary tools for analysis and execution.
On the other end, it will give the necessary tools insights for CoinShares to cement the hiatus between traditional finances and DeFi. The idea is to increase the reliability of digital assets by bringing in trustworthy institutions. This would help build a transparent and secure environment for users desiring to explore DeFi. The firms have combined their innovative ideas to being the new physical backed Solana ETP that requires a 0% management fee. With this new launch, CoinShares adds its fourth ETP of this year.
According to FTX’s Sam Bankman-Fried, CoinShares is a well-reputed firm with a proven record, and it would be a key aspect in the journey of FTX Access to bring institutional-grade services to the DeFi. With the firm’s decade-long experience, FTX will speed up its run towards innovation and cost-effectiveness in digital assets. Reportedly, the new Solana ETP will make use of CoinShares owned tech company Galata to facilitate the bridging of digital assets with centralized finance. The CoinShares FTX Solana ETP is set to be listed in Xetra, the primary market of Germany. With everything being said, this is not the first time FTX moved towards traditional markets. Earlier this year, FTX initiated an ambitious program to capitalize on the 300 billion dollar untapped market for luxury products.