5 min readCoinShares, Europe’s leading digital asset investment firm, is excited to announce the launch of two innovative 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.
Discover our Crypto Index ETPs
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.
CoinShares Physical Top 10 Crypto Market ETP (CTEN)
Underlying Index: CoinShares-Compass Top 10 Crypto Market Index
Management Fee: Reduced to 0.0% p.a.
ISIN: JE00BPRDNL86
Ticker: CTEN
With CTEN, investors can diversify across the largest crypto projects. The underlying index tracks the 10 largest cryptocurrencies by market capitalization, effectively capturing 80% of the market.
The index is currently composed of BTC, ETH, LTC, XRP, TRX, ADA, DOT, UNI, SOL, MATIC.
Weightings within the index are based on rolling average market capitalization, but capped at 35% to enhance diversification and reduce concentration risk. This means that even though Bitcoin holds a market share of 46% as of March 2023, it only accounts for 35% of the index.
An automatic quarterly rebalancing schedule means that the product keeps track of market changes while avoiding excessive trading costs.
More information can be found on the product page.
CoinShares Physical Smart Contract Platform ETP (CSSC)
Underlying Index: CoinShares-Compass Smart Contract Platform Index
Management Fee: Reduced to 0.0% p.a.
ISIN: JE00BPRDNM93
Ticker: CSSC
CSSC is a thematic Crypto Index ETP that provides exposure to the infrastructure layer of the digital asset market. Smart contracts form the foundations of tomorrow's dApps, DeFi, NFT, and Web3.0 protocols, but investors looking to benefit from the rise of Web3 might feel lost among all the options available. CSSC makes this dynamic market available through a single product.
Just like the CoinShares-Compass Top 10 Crypto Market Index, the CoinShares-Compass Smart Contract Platform Index groups 10 constituents based on rolling average market capitalization (excluding private coins and stablecoins), with a 35% cap to reduce concentration risk. The portfolio rebalances once per quarter.
The index is currently composed of ten tokens: ETH, TRX, XLM, ADA, ALGO, LINK, MATIC, SOL, AVAX, DOT.
For more information, check out the product page.
Features & benefits
Institutional-grade security
Both ETPs are physically-backed, meaning that they buy and hold the underlying assets of the indices they track. The crypto is held securely by Komainu, a regulated, specialist digital asset custodian.
Automatic quarterly rebalancing
The quarterly rebalancing schedule, combined with a maximum limit of ten constituents, keeps the products up-to-date with market changes without incurring the high trading costs associated with more frequent rebalancing strategies. Plus, the 35% maximum weight reduces concentration risk in a market heavily dominated by Bitcoin.
Regulated indices
Both underlying indices are BMR compliant, and administered by Compass Financial Technologies (France) which registered as Benchmarks Administrator by the Autorité des Marchés Financiers (AMF) under the EU Benchmarks Regulations (EU BMR).
Management fees reduced to zero
With management fees reduced to 0%, benefit from the movement of baskets of crypto in a convenient and cost-efficient manner.
Diversification Made Easy
With CoinShares’ new zero-fee Crypto Index ETPs, investors can easily gain exposure to the leading and future-oriented digital assets - all through cost-effective and regulated products.
Visit CoinShares’ Product List for more information.
