CoinShares, Europe’s digital asset investment firm, is announcing the launch of two zero management fee Crypto Index ETPs: CoinShares Physical Top 10 Crypto Market ETP & CoinShares Physical Smart Contract Platform ETP.
These two products will be “listed on German’s main market Xetra.”
Both ETPs have “had their management fees reduced to 0.0% p.a., are 100% physically-backed with real crypto, accessible via traditional investment platforms and brokerage apps, and aim to track dynamic, Benchmark Regulation (BMR) compliant indices developed by digital asset experts CoinShares and Compass Financial Technologies.”
They are designed “to maximise risk-adjusted returns, and to offer seamless, cost-efficient exposure to the rapidly evolving cryptocurrency landscape with the added.”
Crypto Index ETPs: Smart Diversification
An index is “a collection of securities that represents either an entire market or a subsection of it.”
ETPs can “replicate the performance of an index, thus providing investors with diversified exposure to a whole industry or sub-sector in a single trade, all with the convenience, liquidity and security of a publicly-traded security in a regulated wrapper.”
By investing in Crypto Index ETPs, investors can “achieve broad market exposure to digital assets while reducing the concentration risk that comes with investing in single cryptocurrencies.”
This can result in “a more balanced and diversified investment strategy, which in turn can potentially lead to better risk-adjusted returns over the long term.”
With diversification comes the need “to adjust exposure to more assets as they fluctuate – Index ETPs can ease this process.”
CoinShares’ Index ETPs offer “the advantage of automatic rebalancing and maintaining a desired weight per asset over time, as defined by the underlying index.”
Therefore, investors can “implement diversification within their crypto investment strategy without the need for constant monitoring and manual portfolio rebalancing.”
As noted in the update:
“We are proud to launch two Crypto Index ETPs encapsulating the performance of the most prominent blockchains on the market. The two new products, CoinShares Physical Top 10 Crypto Market ETP (CTEN) and CoinShares Physical Smart Contract Platform ETP (CSSC), are designed to provide seamless and transparent access to the digital asset market.”
CoinShares has strategically “reduced the management fees for both CTEN and CSSC to 0.0% p.a., ensuring cost-efficiency for investors.”
For more details on this update, check here.