Cryptos: world’s largest crypto ETP issuer enters US market

The Crypto Basket 10 Index Fund and the Crypto Mid-Cap Index Fund, launched by 21Shares US Advisers, are private placements tracking indices developed by index provider Vinter, and are available to accredited US investors.

The Crypto Basket 10 Index Fund tracks the prices of the top 10 cryptocurrencies available on US exchanges, based on market capitalisation. The Mid-Cap Index Fund, which omits exposure to bitcoin and ether, offers exposure to the next eight cryptoassets with the highest market caps.

According to Arthur Krause, vice president of product at 21Shares, the cumulative return rate of the top dozen cryptocurrencies has greatly outperformed the S&P 500, Dow Jones Industrial Average and Nasdaq Composite over long time periods.

‘Our two new index funds enable accredited investors to participate in cryptocurrencies without assuming the responsibility of managing custodial arrangements, tracking private keys and passwords, or being susceptible to hacking or security breaches,’ he said.

The Switzerland-based firm sought to enter the US market by filing last year to offer a spot bitcoin ETF with Ark Invest. The SEC has not yet approved such a product.

The launch in the US follows the recent expansion of 21Shares into Australia earlier in May with the launch of the continent’s first spot bitcoin and ether ETPs.

Valour rolls out Enjin and Cosmos trackers in Germany

DeFi Technologies’ digital asset exchange traded products (ETPs) provider Valour has received approval to begin trading Valour Enjin (ENJ) EUR and Valour Cosmos (ATOM) EUR on the Boerse Frankfurt Zertifikate. Trading of Valour Enjin (ENJ) EUR and Valour Cosmos (ATOM) EUR began on 26 May.

The new ETPs will enable both retail and institutional investors to gain exposure to the native tokens of the Enjin and Cosmos networks.

The Valour Enjin (ENJ) EUR ETP (ISIN CH1149139656) tracks the price of ENJ, the native token of the Enjin protocol.

Enjin is an online gaming community creation platform built on Ethereum blockchain. Enjin aims to make the gaming experience easy for developers and players by providing crypto-backed value and tools like software development kits (SDKs), game plugins, wallets, virtual item management apps, along with a payment gateway platform. Using the Enjin platform, gamers and content creators can easily manage, distribute, and trade their virtual goods, including NFTs. ENJ is currently among the top eighty cryptocurrencies in the world by market capitalization, at US$600.74 million as of 25 March 25.

The Valour Cosmos (ATOM) EUR ETP (ISIN CH1149139664) tracks the performance of the native token of Cosmos. Cosmos is a cryptocurrency that powers an ecosystem of blockchains designed to scale and interoperate with each other. The team aims to "create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way." Cosmos is a proof-of-stake chain. ATOM is currently among the top thirty cryptocurrencies in the world by market capitalisation, at US$2.9 billion as of 25 March.

Valour offers fully hedged digital asset ETPs with low to zero management fees, with product listings. Valour's existing product range which is available across four European exchanges includes Valour Uniswap, Cardano, Polkadot, Solana, and Avalanche ETPs – as well as Valour’s flagship Bitcoin Zero and Valour Ethereum Zero products.

Alpha Sigma and EQIFi partner to create structured products

Alpha Sigma Capital (ASC), a digital asset fund investing in emerging cryptocurrencies and blockchain companies has entered into a partnership with EQIFi, a decentralised finance platform backed by a digital bank, after purchasing up to US$3 million of EQX tokens as part of the strategic relationship.

Alpha Sigma Capital, led by entrepreneur and leading corporate strategist, Enzo Villani has taken a keen interest in leveraging decentralised finance protocols and wrapping them in regulated environments. 

The EQIFi EQX purchase is part of a strategic partnership with ASC which will be providing additional support and strategic advisory including alliances, product, and corporate development. 

‘EQIFi is delivering more products and services than any other platform and simplifying the complex world of DeFi,’ said Enzo Villani, CEO of Alpha Sigma Capital. ‘ASC is working with senior management at EQIFi to launch specific DeFi enhanced structured products to generate significant yields with downside protection.’

EQIFi’s is seeking to increase the options of digital asset owners for secure custody and banking level access to their digital assets.

Stuttgart exchange opens flatexDeGiro to cryptocurrencies

Boerse Stuttgart Group and European online broker flatexDeGiro have partnered to offer crypto trading.

Customers of flatexDeGiro in Germany and Austria will have direct access to trading in major cryptocurrencies through their flatex accounts by the end of the third quarter of 2022 via the exchange’s Bison retail platform.

Investors using the platform will also be able to access the ‘secure crypto custody service’ operated by the custodian blocknox – via direct in-app access from flatex and DeGiro with an accelerated onboarding process.

Cryptocurrencies available for trading on Bison free of charge include bitcoin, ethereum, litecoin, ripple, bitcoin cash, chainlink and uniswap.

The admission of further cryptocurrencies will follow in the next months. Only the spread between the displayed buying and selling prices is charged. Blocknox, a subsidiary of Boerse Stuttgart Group, takes care of the custody of cryptocurrencies on an escrow basis.

The partnership is expected to be extended to other European countries.

New Grayscale products available for trading on OTC markets

Digital currency asset manager Grayscale Investments has announced that the Grayscale Basic Attention Token Trust, Grayscale Chainlink Trust, Grayscale Decentraland Trust, Grayscale Filecoin Trust and Grayscale Livepeer Trust have begun trading on OTC Markets.

The asset manager now offers 14 digital currency investment products trading on OTC Markets. The Trusts are investment vehicles that intend to allow investors to gain exposure to the price movement of each of the Trusts’ underlying asset, or specific digital currency, so investors can avoid the challenges of buying, storing, and safekeeping the assets directly.

Grayscale Basic Attention Token Trust (GBAT), Grayscale Chainlink Trust (GLNK), Grayscale Decentraland Trust (MANA), Grayscale Filecoin Trust (FILG) and Grayscale Livepeer Trust (GLIV) have each offered a private placement to accredited investors since March 2021.

The investment objective of each Trust is for the shares (based on assets per share) to reflect the value of the digital asset held by the Trust, determined by reference to the applicable CoinDesk index or reference rate at 4:00 p.m. New York time, less the Trust’s expenses and other liabilities.

The Trusts will not generate any income, and regularly distribute their underlying assets to pay for their ongoing expenses. Therefore, the amount of assets represented by each respective Share gradually decreases over time.

Image: Vinter logo