Exchange-traded products (ETPs) that expose investors to ether (ETH) and solana (SOL) values in addition to additional incentives from staking are planned by Figment Europe, an institutional staking services provider, and Apex Group, a global financial services organisation with headquarters in Bermuda.
The two funds, called Figment Solana Plus Staking Rewards (SOLF) and Figment Ethereum Plus Staking Rewards (ETHF), will make their debut on the SIX Swiss Exchange on March 12 and will always have 100% backing, the businesses announced on Thursday.
ETPs will shield investors from the difficulties associated with staking individually while offering exposure to ether and solana prices as well as other staking benefits, such as maximum extractable value (MEV). The ETPs’ performance will be improved by reinvested staking yields. Reordering transactions within blocks yields a value known as MEV, which is superior to both petrol fees and the regular block reward.
After almost a dozen spot bitcoin exchange-traded funds (ETFs) were approved in January by the U.S. Securities and Exchange Commission, the announcement was made. Indicating a robust institutional appetite for digital assets, the ETFs have since attracted billions of dollars. Many European nations have long offered spot-based products, and earlier this month, ETC Group debuted a staking ETP on Deutsche Boerse that is comparable.
Despite their frequent interchangeability, the terms ETP and ETF have separate meanings. All exchange-traded funds (ETFs) in the United States that aim to mirror the performance of an underlying asset are referred to as ETFs. Regulations in Europe advise referring to individual assets, such as bitcoin, as ETPs.
Conservative institutions hoping to obtain staking rewards without explicitly supporting Ethereum and Solana validators may find the ETPs’ structure especially appealing. Users lock native tokens on proof-of-stake blockchains such as Ethereum and Solana in exchange for incentives to aid in transaction validation. The procedure is comparable to making investments in fixed-income instruments such as bonds.
The statement from Figment’s head of institutional business development, Josh Deems, stated that “the popularity and interest in ETH and SOL has increased substantially over the past few months.” Institutions still find it difficult to directly purchase cryptocurrency and stake it, though. The ETPs will make staking incentives more accessible to a larger audience, and Figment is honoured that Apex and Issuance.Swiss selected Figment to be a part of this advancement.”
Issuance.Swiss AG, a complete solution for listing financial instruments like ETPs, powers Figment’s ETPs. Both products will have a 1.5% administration fee and will follow an index that is supplied by MarketVector, which monitors the performance of coin prices and incentives for staking.