Cryptos: Yield App acquires US structured product provider

Yield App adds four new structured product strategies offering the opportunity to ‘capture upside across a range of market conditions’. These include dual currency structures which can help acquire a cryptocurrency at a lower price at a predetermined point in the future, while also earning yield; a range structures to generate yield with a view that markets will remain within a specified price range; sharkfin structures targeted at investors with a moderately bullish view on future prices, which will pay a guaranteed minimum coupon with the potential to generate a high yield at maturity; and target products designed for investors with a bullish view on the future price of a cryptocurrency.

Structured products have been a core offering under wealth management for years - Lucas Kiely, Yield App

Following the acquisition, Yield App will be launching ‘Trofi, powered by Yield App,’ a beta version of a dedicated investment app which will allow access to Yield App's first crypto structured products.

‘Structured products have been a core offering under wealth management for years. But in crypto, structured products have not yet gained the prominence they have in traditional finance,’ said chief investment officer of Yield App, Lucas Kiely (pictured). ‘As cryptocurrency markets mature, we find ourselves at a perfect inflection point to introduce digital asset structured products that are built with the same methodology and benefits as an exciting alternative for investors with different risk appetites and objectives.’

Trofi Group was founded in 2021 by Andrew Lam, a former FX Options Trader at HSBC Global Banking and Markets.

Valour expands product line

Valour Digital Securities has obtained the approval to register a new EU base prospectus documentation covering physically backed ETP-Products with the Swedish Regulator SFSA.

‘This is an important step in our mission to make digital assets more accessible and facilitate their seamless integration with traditional assets,’ said Olivier Roussy Newton (right), CEO of Valour.

Once approved, the new ETP-securities will be available on regular exchanges in Europe including Deutsche Boerse Xetra, Euronext, and SIX Swiss Exchange and secured by the respective digital assets that are physically stored with regulated custody providers.

Valour's ‘fully hedged’ product range includes two ‘fully hedged fee free’ Bitcoin Zero and Ethereum Zero, as well as Valour Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), Binance (BNB), Enjin (ENJ), Valour Bitcoin Carbon Neutral, and Valour Digital Asset Basket 10 (VDAB10) ETPs.

21Shares rolls out first crypto staking index ETP

Crypto ETP provider 21Shares has partnered with its subsidiary of 21.co, to launch the 21Shares Staking Basket Index ETP, a crypto staking index ETP offering diversified staking income.

The index represents a basket product of crypto assets that provide exposure to staking rewards while tracking the performance of underlying staked cryptos through a single ETP. The 21Shares staking index methodology used for this product was built in collaboration with Swedish index provider Vinter.

The 21Shares Staking Basket Index ETP tracks proof-of-stake (PoS) cryptocurrencies, including Binance Coin, Cardano, Cosmos, Polkadot, Solana, and Tezos. The index will rebalance on a semi-annual basis in March and September to reflect market shifts.

“Staking is a long-standing feature of the blockchain ecosystem that allows crypto holders to earn rewards in exchange for locking up their assets,” said Arthur Krause (above-right), director of ETP Product at 21.co, parent company of 21Shares. “Our research has shown that investors are interested in diversified, crypto-native return streams – especially amid crypto winter.’

The 21Shares Staking Basket Index ETP is available for trading on the BX Swiss exchange, with Xetra Deutsche Boerse to follow shortly. This is the third staking strategy offered by the ETP provider after the launch of single asset staking products – 21Shares Solana Staking ETP and 21Shares Tezos Staking ETP.

Metalpha looks to expand after restructuring

Dragon Victory International has officially changed its name to Metalpha Technology.

Upon completion of the reorganisation, Metalpha will become a wholly-owned subsidiary of Metalpha Technology Holding. Established in 2021, Metalpha is a digital asset wealth management company headquartered in Hong Kong SAR, and specialised in tailor-made instruments targeted at sophisticated investors to ‘establish or liquidate investment positions or undertake hedging strategies’.

After the reorganisation the firm will expand its presence in digital asset wealth management leveraging the experience in derivatives and structured products to its team of former investment bankers.

‘The crypto industry continues to have room for growth, despite its challenges this year,’ said founder and CEO Adrian Wang (above-right).

Metalpha ‘will actively work with regulators on various compliance measures and plans to invest in supporting public education in blockchain technology’. The company does not offer services to mainland China.

BitOoda gains support of global renewable energy firm

Digital asset investment bank BitOoda has completed the first phase of its Series A round, led by RWE Energy Transition Investments, an investment vehicle of RWE Supply & Trading GmbH, the energy trading arm of global renewable energy company RWE.

The funding will be used ‘to accelerate the expansion of new, innovative and compliant capital markets solutions for institutional clients, including investment banking, bespoke structured products, spot and derivatives brokerage, research, and advisory services’.

‘Now is the time for mature, compliance-focused firms like BitOoda to seize the opportunity created by the failure of unregulated and unsophisticated market incumbents,’ BitOoda CEO Tim Kelly (right) said. 

Costas Papamantellos, managing director & head of RWE Energy Transition Investments, said the energy industry ‘needs to work with the growing compute sector to support the global energy transition, especially given the already complex interactions with wholesale electricity markets’.

‘As blockchain technology, digital assets and high performance compute markets continue to mature, we expect increased applications for established commodity trading risk management solutions,’ he said.

The firm also plans to pursue opportunities surrounding the commoditisation of high performance compute, tokenisation and zero knowledge infrastructure.