A Swiss fintech company is rolling out the first crypto exchange-traded products (ETPs) for Cardano (ADA) and Stellar Lumens (XLM).
21Shares AG is listing Stellar XLM ETP (AXLM) and Cardano ADA ETP (AADA) on the Swiss stock exchange (SIX Exchange) on April 26th with a base fee of 2.5% per year. It is also adding the two investment products to the Stuttgart and Dusseldorf multilateral trading facilities (MTFs).
The firm says it is expanding its roster of crypto exchange-traded products amid rising interest in Cardano and Stellar Lumens. 21Shares says demand for its crypto ETPs soared by 200% since Q1 2021 as institutional investors allocate funds to institutional-grade and open-ended ETPs, driving the increase in new inflows.
ETPs track underlying securities and other financial instruments. Their share price is also derived from these assets. AXLM and AADA replicate the performance of Stellar Lumens and Cardano, respectively.
“Both AXLM and AADA ETPs will allow clients to diversify and gain exposure to cross-border transitions between any pair of currencies whilst Cardano will help running smart contracts using proof of stakes on a level previously not possible executing using your bank or broker. The ETP structure is 100% physically collateralised, segregated and replicates 1:1 the tracking of both crypto assets.”
Each unit of AXLM will be backed by approximately 40 XLM, and AADA by 16 ADA at launch. Coinbase will custody the firm’s Stellar Lumens collateral, while Kingdom Trust will custody the ADA collateral.
Stellar Lumens aims to provide a frictionless and low fee method of transferring funds and holds around a $9 billion market cap at time of writing. Cardano is a blockchain network rivaling Ethereum and holds a roughly $35 billion market cap.
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