CoinShares physically-backed Polkadot ETP hits SIX Swiss Exchange

abdelaziz Fathi

Europe’s largest digital asset investment firm, CoinShares has rolled out a physically-backed exchange-traded product (ETP) for the polkadot cryptocurrency.

The new ETP has been listed on Switzerland’s SIX Swiss Exchange in Zurich, and provides simple exposure to the Polkadot ecosystem and rewards for participating in their security. The offering is 100% physically backed by actual crypto assets and the staked coins will be stored in a secure custodian.

Proof-of-stake blockchains like Polkadot requires holders to stake their cryptocurrency to add new blocks, which then triggers additional yield by validating transactions on the relevant network.

Polkadot market capitalization is currently around $16.1 billion, , according to CoinMarketCap, putting its DOT token at the 13th place in the cryptocurrency rankings.

The latest launch follows the Germany’s main market, Börse Xetra giving CoinShares approval to list a pair of physical staked ETPs for Polkadot and Tezos. The product is also the latest in a series of ETP launches outside the US focused on assets beyond major coins such as bitcoin and ether.

CoinShares said the staked ETPs also allow the issuer to reduce the management fee as staking awards accrue. Last month, the company has already reduced the management fees from 1.5% to zero by adjusting the coin entitlement daily to share annualized staking awards of 5% for Polkadot.

A physically backed crypto ETP traditionally has a coin entitlement which refers to the number of digital assets the fund entitled to hold. As such, investors have the option to redeem ETP shares directly for the Polkadot’s native toke, DOT.

Townsend Lansing, Head of Product at CoinShares, commented, “The SIX Swiss Exchange was one of the first regulated exchanges in Europe to allow for the trading of digital asset ETPs, and Swiss investors continue to show strong interest in investing in digital assets via listed products. We are excited to list our innovative physical-backed staked Polkadot ETP in Switzerland and provide a wider audience with a means to further involve themselves in the cryptocurrency ecosystem.”

CoinShares ETPs aim to be the lowest cost product providing regulated access to crypto tokens, whilst benefiting from the institutional grade security and 100% physically backed features that match other ETC securities.

CoinShares, which has nearly $3.5 billion in assets under management (AUM), says its lineup of physical ETPs have been produced in response to strong demand from institutional investors to gain crypto exposure through regulated means.

Read this next

Industry News

Lindsay Lohan, Jake Paul, Soulja Boy, Kendra Lust, Ne-Yo, Akon charged by SEC in crypto fraud case

“Sun paid celebrities with millions of social media followers to tout the unregistered offerings, while specifically directing that they not disclose their compensation. This is the very conduct that the federal securities laws were designed to protect against regardless of the labels Sun and others used.”

Institutional FX

State Street to acquire CF Global Trading to enhance global outsourced trading service

“Our team has worked with our clients for 20+ years to develop a global, multi asset class execution platform with a focus on accessing liquidity, improving workflows and reducing costs.”

Digital Assets

BitGo taps Coincover to allow clients to store backup keys for wallet recovery

“There is no such thing as too secure. That’s why we have elevated our relationship with Coincover, to integrate the option of storing backup keys with Coincover for all BitGo’s coin offerings.”


Coinbase integrate with Brazil’s Pix payment network

Cryptocurrency exchange Coinbase has integrated the Brazilian government’s payment system Pix and started allowing users to top up and withdraw money from their accounts using Brazilian Real.

Retail FX

eToro integrates with TradingView charts

Israeli broker eToro has upgraded its social trading platform to integrate professional charting and trading platform TradingView.

Digital Assets

Eurex rolls out first Bitcoin index futures in Europe

Deutsche Börse’s derivatives-focused exchange, Eurex is looking to bring another level of diversification to cryptocurrency traders with the launch of Bitcoin index futures.

Digital Assets

Apex Group taps Crypto Finance for digital-asset infrastructure

Swiss fintech Crypto Finance, the crypto arm of German stock exchange operator Deutsche Boerse, has partnered with US-based financial services provider Apex Group to offer institutional-grade crypto products.

Digital Assets

OneCoin legal officer faces decades in jail for laundering proceeds

Irina Dilkinska, former head of legal and compliance of cryptocurrency scam OneCoin, is facing up to 40 years in prison for her participation in the massive fraud scheme.

Institutional FX

Alpha Group reports solid financials for 2022

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) announced its results for the financial year ending December 31, 2022, which showed solid performance in terms of revenue and earnings growth.