Leonteq has expanded its crypto offering with new SIX-listed tracker certificates tracking Algorand in CHF, EUR and USD.
Algorand is a decentralised network, launched in June 2019 by computer scientist and MIT professor Silvio Micali, and is designed for rapid transactions with a strong focus on achieving near-instant finality (the time it takes transactions to be deemed confirmed) while also supporting smart contracts).
Algorand tries to solve speed, security and decentralisation simultaneously by introducing a new proof of stake concept (called pure proof of stake) – allowing for speedy confirmation of one single block at a time by a group of randomly selected validators. Since only one block is validated at a time, the Algorand blockchain can also not fork (the splitting of the blockchain into two or more incompatible versions) and finality is achieved instantaneously (approx. 4.5 seconds). The Algo is the cryptocurrency of the Algorand blockchain.
Algorand is a decentralized network built to solve the blockchain trilemma of achieving speed, security, and decentralisation simultaneously.
Leonteq is the main provider of crypto assets in a securitised format and now offers tracker certificates on 22 crypto assets in the DACH region, including 0x, Aave, Algorand, Bitcoin, Bitcoin Cash, Cardano, Chainlink, Compound, Cosmos, EOS, Ethereum, Ethereum Classic, Filecoin, Litecoin, Maker, Polkadot, Ripple, Solana, Stellar, Tezos, Uniswap and Yearn.Finance.
This is the latest addition to Leonteq’s crypto offering and follows the launch in early October of a reverse convertible on Ether offering a guaranteed coupon of 20% pa and a strike level of 60% of the initial fixing level. The Swiss provider brought to market the first ever reverse convertible linked to this cryptocurrency, offering a guaranteed coupon of 10% (20% pa) and a strike level of 55% of the initial fixing level.
Leonteq’s range of crypto products which have seen a 15-fold increase in revenues (CHF9.2m/€8.4m), according to the firm’s H1 2021 results.
21Shares expands range of crypto ETPs
21Shares, the Swiss issuer of physically-backed crypto exchange-traded products (ETPs), has listed three additional crypto ETPs on the SIX Swiss Exchange.
The new product launch brings the total number of crypto ETP products issued to 20 on the Swiss market and a total of 80 listings on Swiss and European markets.
The 21Shares Polygon ETP (Ticker: POLY - ISIN CH1129538448) tracks the investment results of Polygon, an Ethereum scaling platform onboarding millions to Web3. Hosting more than 3,000 applications, Polygon has become the most popular full-stack Ethereum scaling solution due to its high speed, low transaction cost, and network composability.
The 21Shares Avalanche ETP (Ticker: AVAX - ISIN: CH1135202088) tracks the performance of Avalanche, an Ethereum rival, which aims to unseat the most popular blockchain for smart contracts. Its key strength is the higher transaction output of up to 6,500 transactions per second, while not compromising scalability.
The 21Shares ETP Algorand (Ticker: ALGO -ISIN: CH1146882316) tracks the price of Algorand, a layer 1 blockchain solution supporting the creation of decentralised applications.
All 21Shares ETP are accessible to investors using a bank or broker that has access to the SIX Swiss Exchange. The ETPs are fully backed by the underlying crypto asset and is held in institutional-grade security and custody solution, using state-of-the-art cold storage and safety measures, including multiple private keys, whitelisting, and audit trails.
As of November 2021, 21Shares manages almost $3bn in 20 cryptocurrency ETPs and 80 listings, including two new basket ETPs, featuring the eligible top five and top ten crypto assets. 21Shares’ crypto ETP products are listed on eight regulated European and Swiss trading exchanges.
ETC Group rolls out first ETF linked to Solactive digital assets/blockchain play
Exchange-traded funds (ETF) investment platform HANetf has partnered with ETC Group to create the ETC Group Digital Assets & Blockchain Equity UCITS ETF (ticker: KOIN).
The new tracker fund is listed on the London Stock Exchange and will be passported for sale across Europe.
The ETC Group Digital Assets & Blockchain Equity UCITS ETF - KOIN will deliver pure-play exposure to the digital assets and blockchain ecosystem companies including those that have business operations in the field of blockchain technologies including cryptocurrency mining, blockchain technology or cryptocurrency trading and exchanges.
The KOIN ETF tracks the Solactive ETC Group Digital Assets and Blockchain Equity Index and has a total expense ratio of 0.60%.
This is the first thematic ETF from the team at ETC Group. ETC Group is behind the BTCetc – ETC Group Physical Bitcoin (ticker: BTCE) which became the first crypto ETP approved by the German regulator BaFin, and the world’s first centrally cleared crypto exchange traded product when it listed on Germany’s Deutsche Börse Xetra exchange in June 2020.
In the first half year 2021, BTCE had a US$3.986 billion order book turnover in H1 2021 and was the most traded product within the whole ETF & ETP Segment on Deutsche Boerse Xetra, surpassing the most traded and popular blue chip ETFs - its assets increased from US$89m in October 2020 to over US$1.5 billion assets in October 2021.
FOLLO introduces first structured fund protocol open for any token
DeFi derivative protocol Follo has launched a structured fund model to create a USD coin-denominated bond and a leveraged token based on spot of any token.
The firm is offering a senior tranche - a USDC-denominated bond that guarantees principal and interest to the user, and a subordinate tranche - a leveraged token that can be traded anywhere with variable leverage at any time.
The underlying assets [senior tranche] are used across the protocol and in combination with automated market makers (AMMs) to provide the necessary leverage available to those participating in the subordinated tranche.
By automating this process through the Follo protocol, users will be assured that their funds and leveraged trades are secured on-chain, regardless of tranche.
To make this work, the protocol locks the underlying asset at several times the market value of the leveraged tokens. This ensures that the protocol ensures user security while creating a cryptographically-secure float across the Follo network.
To address market volatility Follo has introduced an automatic rebalancing mechanism to maintain a fixed leverage ratio for its users. The rebalance occurs for leveraged tokens with a fixed ratio when the leveraged ratio begins to deviate from the target ratio, and it is aimed at reducing the leverage multiple and adjusting the unsold shares of senior and subordinated funds. Conversely, this mechanism will increase leverage if the price of a token goes up. The purpose of the rebalance is to avoid liquidation and ensure that leverage is stable.
Follo Protocol has opened its second round of fundraising for product development and global marketing
VanEck lists low cost futures bitcoin-linked ETF
VanEck has launched the VanEck Bitcoin Strategy ETF (XBTF), an actively managed ETF that seeks capital appreciation by investing in standardised, cash-settled bitcoin futures contracts.
The ETF, listed on Cboe, is the lowest-cost bitcoin-linked ETF, with a net expense ratio 30 basis points (bps) lower than its next closest competitor, the ProShares Bitcoin Futures (BITO) ETF which went live on 19 October and raised US$1 billion in two days.
The fund is the first ETF in VanEck’s suite of US-listed funds to provide exposure to bitcoin futures and joins VanEck Inflation Allocation ETF (RAAX) in providing investors with bitcoin exposure. RAAX has held positions in other bitcoin-focused products since January 2021.
The Fund which is actively managed by Greg Krenzer, head of active trading at VanEck, will invest primarily in bitcoin futures listed and traded on the CME, a category that has seen tremendous growth over the past few years - average daily open interest in the CME’s bitcoin futures has increased from US$77m in average daily open interest in Q1 2018 to approximately US$1.5 billion in Q3 2021.
State Street will provide services including ETF basket operations, custody of the ETF shares, fund accounting, order-taking and act as the transfer agent.
VanEck currently offers a range of digital assets related ETPs in Europe and has a growing series of digital assets benchmark indices offered through its index subsidiary, MVIS.
The fund has a net expense ratio of 0.65%.