Home › CoinShares and FTX team up to launch world’s first physically-backed Solana ETP

CoinShares and FTX team up to launch world’s first physically-backed Solana ETP

March 23, 2022 By Benson Toti

The Solana exchange-traded product (ETP) will launch with 1 million Solana (SOL) in seed capital and be 100% physically backed.

Digital asset management firm CoinShares and the top regulated crypto exchange platform FTX have launched a Solana (SOL) exchange-traded product (ETP), according to a news release shared on Wednesday, 23 March.

Europe-based CoinShares, which currently manages $3.8 billion in assets under management (AUM) and FTX announced the ETP was the first initiative between the two companies following the sealing of a partnership agreement.

The CoinShares FTX Physical Staked Solana will provide investor exposure to Solana and the network’s rewards ecosystem, the firms said. 

Reportedly, it’s the world's first physically-backed Solana ETP and will see investors receive returns from staking.

Solana among most requested exposures

The ETP will be available via FTX Access, an institutional-grade digital assets solution that FTX recently rolled out.

Sam Bankman-Fried, the CEO of FTX noted in a statement that the ETP was one of the innovative and value-addition products the firm eyes for its clients. He also noted the partnership with CoinShares was a result of the asset management firm’s near-decade record as a top provider of regulated and innovative crypto investments.

“We're excited to work alongside CoinShares to give investors access to the Solana ecosystem and we look forward to collaborating further on additional offerings,” Bankman-Fried said

CoinShares chief revenue officer Frank Spiteri said that the company has received “overwhelmingly positive” feedback on its range of innovative staked ETPs and that the partnership with FTX offers another opportunity for them to double down on the sector. 

He added:

“Solana is one of the most requested exposures amongst our clients and SLNC is launching with 1M SOL in AUM; a level that meets institutions' and corporates' baseline for investment consideration."

The ETP is set for listing on Germany's Xetra and will trade under the ticker SLNC. Investors will benefit from 3.0% in staking rewards per annum, with management fee cut to 0.0% per annum.

Per the two firms, the product will be “100% physically-backed at all times.”