In this week’s roundup, we look at the latest offerings at Valour, HSBC, Cega, Fineqia and Bybit.

Valour has licensed the STOXX Digital Asset Blue Chip X index as an underlying for an exchange-traded product (ETP) listed on the Frankfurt Stock Exchange. The index marks STOXX’s entry into the digital assets space after it went live on 6 December 2023 in partnership with crypto-financial services provider Bitcoin Suisse.

Investors are clearly allocating significantly more to alternative asset classes to diversify their portfolios - Axel Lomholt, STOXX

Reviewed quarterly, the index provides exposure to assets within the underlying STOXX Digital Asset Blue Chip Index that trade on Xetra. Assets are selected based on a multi-step procedure which seeks to identify the strongest and most representative assets in each eligible sector of the Bitcoin Suisse Global Crypto Taxonomy. 

‘Investors are clearly allocating significantly more to alternative asset classes to diversify their portfolios. That’s why we are moving into an investment segment that’s increasingly gaining a foothold in portfolios,’ said Axel Lomholt (pictured), general manager at STOXX.

HSBC debuts gold token for HK retail investors

The UK bank launched a gold token in Hong Kong SAR, the first retail product in the city to be based on distributed ledger technology, authorized by the Securities and Futures Commission (SFC), said Maggie Ng, Hong Kong head of wealth and personal banking at HSBC.

The offering is in line with a broader industry trend towards the tokenisation of real-world assets as financial institutions are increasingly exploring the potential of blockchain technology to transform traditional financial products and services, according to the bank.

The initiative was first hinted at in November 2023, as part of HSBC’s efforts to launch a new digital asset custody platform in partnership with Metaco, a Swiss-based crypto custody specialist.

Cega goes live with Tether gold-linked structured product

Cega has introduced Gold Rush, the first on-chain structured investment with Tether gold (XAUT) as an underlying asset, according to the Singapore-based DeFi structured investments platform.

The product is designed to marry the safe haven asset class and diversification benefits of gold with the dynamic earning potential of DeFi options. It’s set to offer return of up to 83% pa. on popular staking currencies such as ETH, stETH, wBTC or stablecoins like USDC.

The yield will be paid in the staking currency, allowing investors to maintain their asymmetric upside. Additionally, they will receive downside protection on their deposits against market declines up to 30%. ‘This safety element is an attractive aspect of the fixed coupon note strategy (FCN) owing to a technical feature called a barrier option,’ stated the provider. 

Fineqia granted approval by to list its first ETN

Liechtenstein-based Fineqia AG, a subsidiary of Fineqia International, has received authorisation from the Vienna Stock Exchange to list its first exchange-traded notes (ETNs), with digital assets as their underlying collateral.

The pathway is now open for us to bring signature and differentiated products to the European market - Bundeep Sinh Rangar, Fineqia

The approval enables Fineqia to automatically list ETNs that adhere to its base prospectus, without requiring each ETN’s listing to be individually approved under a debt issuance programme. To that end, Fineqia AG renewed its prospectus on March 22 with Liechtenstein's regulator, the Financial Markets Authority (FMA).

European regulators have taken the lead on approving a variety of underlying digital assets in contrast to the US, where Bitcoin has been the only such asset to receive local approval, according to the company.

Fineqia’s base prospectus allows its ETNs to hold crypto currencies such as Avalanche, Bitcoin, Ethereum, Cardano, NEAR, Polkadot, Tezos, TRON and Uniswap as well as non-fungible tokens (NFTs).

‘The pathway is now open for us to bring signature and differentiated products to the European market,’ said Fineqia's CEO Bundeep Singh Rangar (right). 

Bybit Introduces smart leverage boasting liquidity protection

The third largest crypto exchange by volume has introduced Smart Leverage, its latest structured product under the Bybit Earn, aimed at ‘empowering crypto traders to seize market opportunities arising in anticipation of the upcoming Bitcoin Halving’, according to Bybit.

Smart leverage allows traders to take highly leveraged positions (up to 200x) with full liquidation protection until the settlement date. Users therefore can trade short-term volatility for BTC and ETH without needing to worry about sudden price movements closing their positions.

Smart Leverage is a non-principal-protected structured product that allows traders to capitalize on sharp price movements, such as a V-shape recovery. By allowing traders to take profit at any time, users can now amplify their potential returns and more easily trade market volatility.

The latest offering comes on the heels of a regulatory warning against Bybit in Hong Kong SAR. Last month, the Securities and Futures Commission noted to the public that the bourse is an unlicensed virtual asset trading platform (VATP).

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