CoinShares Adding New Physically-Backed ETP Based on Algorand
Physically - Backed Staked Algorand ETP
The new cryptocurrency investment product, the CoinShares Physical Staked Algorand, will trade on Xetra under the ticker RAND. The ETP, made possible by CoinShares' in-house technology platform Galata, enables investors to gain from the 2% staking rewards linked to taking part in Algorand's blockchain security.
The new Algorand ETP is the latest addition to CoinShares' family of staked ETP products, which already includes Polkadot (DOT), Tezos (XTZ), Cardano (ADA), Solana (SOL), Cosmos (ATOM), and Polygon (MATIC), as well as blockchain networks and cryptocurrencies.
CoinShares Physical Staked Algorand
The introduction of the CoinShares Physical Staked Algorand coincides with the market's continued bear market and recent severe volatility, with a total market capitalization below the $1 trillion thresholds. Townsend Lansing, head of product at CoinShares, said:
"Although the volatility observed throughout digital asset markets in recent weeks, we are pleased by the demand we see for our products, notably our line of bankruptcy-remote, physically-backed staked ETPs."
According to Lansing, the launch also coincides with good regulatory news with the completion of the Markets in Crypto Assets (MiCA) legislation in Europe in late June. He continued:
"We see [MiCA] as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets."
Soon after CoinShares announced on July 4 that it had acquired Napoleon Asset Management, the Algorand ETP was released. CoinShares' significant role as an issuer of cryptocurrency ETPs was made possible by the inclusion, which allowed it to provide goods and services compliant with the Alternative Investment Fund Managers Directive.