CoinShares Physical Staked Tezos
The world’s first physically-backed Exchange Traded Product (ETP) providing exposure to the Tezos network’s native asset tez, with a reduced management fee of 0.0% p.a. and additional staking (or ‘baking’) rewards of 3.0% p.a.*
*Learn more in the Staking Rewards section below
CoinShares Physical Staked Tezos | XTZS
| Underlying Asset | tez/XTZ |
| Base Currency | USD |
| Management fee | Reduced to 0.0% |
| Staking Reward | 3.0% p.a. |
| Bloomberg Code | XTZS |
| Securities Lending | No |
| ISIN | GB00BMWB4803 |
| Leverage Factor | N/A |
| Coin Entitlement (CE) | 5.0 tez at launch |
| Price per security | Coin Entitlement (CE) x tez price |
| Domicile | Jersey |
| Replication method | Physical |
| Legal structure | Debt Security (ETP) |
| UCITS Eligible | Yes *UCITS eligibility varies by jurisdiction. Please contact CoinShares if you would like to discuss. |
| UK Reporting Fund Status | Pending |
| Underlying Asset Verification | Armanino LLP (TrustExplorer) |
| Custodian | Komainu (Jersey) Limited |
| Staking Agent | CoinShares Capital Markets (Jersey) Limited |
| Administrator | JTC Fund Solutions (Jersey) Limited |
| Trustee | The Law Debenture Trust Corporation p.l.c. |
| Auditor | Baker Tilly Channel Islands Limited |
| Issuer | CoinShares Digital Securities Limited |
| Registrar | Computershare Investor Services (Jersey) Ltd |
| Country | Exchange | Trading Currency | Bloomberg Code | ISIN | SEDOL | WKN | Listing Date |
| Germany | Börse Xetra | EUR | XTZS GR | GB00BMWB4803 | BMWB480 | A3GVCZ | 26/01/2022 |
| Germany | Börse Xetra | USD | XTZT GR | GB00BMWB4803 | BMWB480 | A3GVCZ | 26/01/2022 |
CoinShares Physical ETP Structure
CoinShares Physical Staked Tezos (XTZS) is a physically backed Exchange Traded Product (ETP). Securities derive their value from the underlying cryptocurrency. All cryptocurrency is securely held with Komainu - an institutional-grade regulated digital asset custodian.
CoinShares Physical ETP Structure
- Investor places buy order for ETPs with a Broker
- Broker either sources existing inventory or asks Liquidity Provider to apply for new ETPs
- Liquidity Provider purchases cryptocurrency in the crypto markets for delivery to the Issuer
- Liquidity Provider then sends cryptocurrency to the Issuer’s custodian
- Only after cryptocurrency has been received, Issuer delivers ETPs to Liquidity Provider
- Liquidity Provider settles securities with Broker and Investor receives those ETPs in exchange for the cash
- Investor places sell order with a Broker
- Broker sells ETPs to Liquidity Provider for cash
- Liquidity Provider delivers ETPs to Issuer
- Only after the ETPs have been delivered, Issuer delivers relevant amount of cryptocurrency to Liquidity Provider
- Liquidity Provider either holds or sells cryptocurrency for cash in the crypto markets
Proof of stake blockchains like Tezos work differently to proof of work blockchains like Bitcoin. In simple terms, adding new blocks to the blockchain requires existing holders to 'stake' their cryptocurrency. In return for staking (also referred to as ‘baking’ for Tezos) they are rewarded with cryptocurrency from that same blockchain.
CoinShares' Staked ETPs are built to allow the Issuer to share staking rewards with investors in two ways:
- The Issuer can reduce the management fee;
- The Issuer can also increase the Coin Entitlement of the ETP each day, as staking awards accrue.
For CoinShares Physical Staked Tezos, the Issuer will share staking rewards as follows:
| Product | Management Fee | Staking Reward |
| CoinShares Physical Staked Tezos | Reduced to 0.0% p.a. | 3.0% p.a. |
Note that staked coins do not move from the secure custodian where they are stored, and the ETP remains 100% physically backed at all times.
How To Invest
Platforms
CoinShares Physical Staked Tezos (XTZS) can be bought and sold in the same way as shares or funds. You can invest in XTZS via your existing investment platform or broker:
- Search for XTZS, CoinShares Physical Staked Tezos, or GB00BMWB4803 on your investment platform
- Input the number or value of securities you wish to buy or sell
- Place the order
Institutions
Our Authorised Offerors are Flow Traders B.V., Jane Street Financial Limited, CoinShares (Jersey) Limited, Bluefin Europe LLP, Goldenberg Hehmeyer LLP & DRW Europe B.V.
Our Capital Markets desk has decades of experience in traditional securities trading, and has also crucially been trading in spot and derivative crypto markets since 2014.
Institutions can contact us to discuss efficient execution, or for unique & direct insight into the digital asset ecosystem.
+31 207 996 777
[email protected]
+44 (0) 203 787 3333
[email protected]
+44 (0) 207 282 0965
+44 (0) 2073903301
+44 (0) 207 469 2500
+44 (0)1534 513 111
FAQs
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An Exchange Traded Product (ETP) is a financial instrument traded on a stock exchange, like shares. They can provide investors with exposure to a huge variety of investments, such as equities, commodities, fixed income, and cryptocurrencies, and can often be purchased through tax-efficient wrappers.
Similar to shares, ETPs can be bought and sold whenever the stock exchange is open as prices are quoted throughout the day, and can often be purchased through tax-efficient wrappers.
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Every share of the ETP is ‘physically backed’ by an amount of cryptocurrency, which is securely stored with a custodian. You can see how much cryptocurrency is backing your shares by checking the daily Coin Entitlement figure (i.e. how much cryptocurrency each Security entitles the holder to).
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CoinShares is Europe’s largest digital asset ETP provider with billions of dollars in assets under management for clients across the continent.
We pioneered the first regulated bitcoin fund in 2014, and are solely focused on cryptocurrencies and digital assets.
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CoinShares Physical Staked Tezos is listed on Börse Xetra in Germany.
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The risk factors relating to the underlying cryptocurrencies are outlined in the Risk Factors section of the Prospectus.
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ETPs provide exposure to a wide range of asset classes and indices that can be difficult or costly to access directly, whilst trading through the same brokers and platforms as shares.
Similar to shares, ETPs can be bought and sold whenever the stock exchange is open as prices are quoted throughout the day, and can often be purchased through tax-efficient wrappers.
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