Crypto asset manager Virtune has announced it will list two additional crypto exchange-traded products (crypto ETPs) on Nasdaq Helsinki. This will allow local investors to invest in digital assets using a familiar financial instrument in their local currency.
According to an official press release, the crypto ETPs will enable investors to add Cardano (ADA) and Avalanche (AVA) to their investment portfolios. Introducing multiple crypto ETPs allows investors to trade digital assets in euros via major Nordic financial institutions and brokers.
The Biggest Crypto ETP Market
The launch marks a significant milestone for the Finish financial market, being the first time crypto-backed products have joined the Nasdaq Helsinki product line. The availability of digital-asset-based products launched in Nasdaq Helsinki, the biggest crypto ETP market in the Nordic region. Moreover, innovative products will introduce regulated staked crypto ETPs for local investors, with staking rewards included in their daily prices.
An Answer to Growing Investor Demand
According to the announcement, the Virtune Avalanche ETP will offer investors a direct 1:1 exposure with Avalanche. In contrast, the Virtune Staked Cardano ETP will offer them a similar physical backing with Cardano with an additional 2% annual return in staking rewards. Commenting on the development, Virtune CEO Christopher Kock stated the purpose of the launch was:
“To meet the growing demand from Finnish investors.”
ETPs refer to a family of securities that track the value of one or more underlying assets traded on regulated exchanges, just like a company’s stocks and shares. Crypto ETPs, like the ones launched by Virtune, offer investors exposure to digital assets via traditional financial instruments. As a result, potential investors don’t have to deal with unregulated entities to participate in crypto investment or be responsible for their security and maintenance.
Different Kinds of ETPs
The market offers different forms of ETPs, including exchange-traded funds (ETFs), exchange-traded commodities (ETCs), and exchange-traded notes (ETNs). Just like ETFs mirror the price of the underlying asset in traditional financial markets, crypto ETFs comprise selected digital assets that are weighted based on their characteristics, such as market capitalization or supply and demand.
Virtue Launched 5 Other ETPs Before
The launch of two new Virtune crypto ETPs follows a similar launch two weeks ago when the asset manager launched five other fully backed and secured euro-denominated ETPs. The five include the Bitcoin ETP offering direct BTC and staked ETH ETP with enhanced returns through staking benefits. Others are XRP ETP, which provides XRP access, and the Staked Solana ETP, which offers both SOL exposures and a 3% staking return. Moreover, a Crypto Altcoin Index ETP tracks up to 10 alternative digital assets, excluding BTC and ETH, with monthly rebalancing. Commenting on the development, Kock stated:
“We have been committed from day one in our vision to becoming the leading crypto asset manager in the Nordics and accelerating the adoption of crypto as an asset class. These euro-denominated listings on Nasdaq Helsinki mark a crucial milestone in our journey.”
Conclusion
Virtune’s introduction of two more products to the Finnish market highlights investors’ growing desire to diversify their investment portfolios. The growth of the ETP segment in Europe follows similar moves globally. Still, digital assets continue to enter the mainstream, especially in the American market.
Frequently Asked Questions (FAQs)
What are the benefits of investing in crypto ETPs?
The advantages of investing in crypto ETPs include tax efficiency, simplicity, security, staking opportunities, and the fact that they are physically backed products.
How are ETPs backed physically?
ETPs by asset managers like Virtune have 100% physical backing, meaning there’s an equivalent value of an outstanding security with every crypto asset in the manager’s cold wallet.
What secures the value of ETPs?
ETPs are backed 100% by equivalent crypto assets, and the underlying asset determines the price of the ETP. The price movement will always be 1:1 with the underlying cryptocurrency.
Is Virtune a regulated agency?
The firm is a registered financial institution regulated by the Swedish Financial Supervisory Authority. It also holds an EU-approved base prospectus for issuing crypto ETPs across Europe.
References
Globe News Wire
ETC Group
Appendix Glossary to Key Terms
Crypto: A form of currency that exists digitally or virtually and uses cryptography to secure the funds.
Staking: Locking crypto assets on a blockchain to help validate transactions on the blockchain and earn rewards in return.
Altcoin: The short form for alternative coin, referring to any other cryptocurrency apart from Bitcoin.
Exchange: An online platform that allows users to sell and buy cryptocurrencies.
Asset Manager: A company that manages financial assets like money, bonds, and stocks on behalf of clients.
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