CoinShares launches new physically backed Ether ETP

Published at: Feb. 24, 2021

Major European digital asset manager CoinShares is expanding its product portfolio with a new physically-backed Ether (ETH) exchange-traded product, or ETP.

Called CoinShares Physical Ethereum (ETHE), the new investment product is launching with around $75 million in assets under management. Announcing the news Wednesday, CoinShares said that each unit of ETHE is backed with 0.03 ETH at launch.

The news comes shortly after CoinShares launched its first physically backed Bitcoin (BTC) ETP, CoinShares Physical Bitcoin (BITC), in January. Similar to BITC, the new ETH ETP will be initially listed on SIX Swiss Exchange. The new product intends to provide investors with passive exposure to Ethereum’s native asset at a base fee of 1.25%.

According to an announcement by Bloomberg, Nomura Holdings-backed digital asset custodian Komainu will serve as custodian for the new CoinShares’ product. Established in partnership with CoinShares, the custodian has already been servicing BITC as well.

ETHE is now listed on Bloomberg, with an opening price of $47.30.

SIX Swiss Exchange is one of the world’s biggest exchanges, providing its trading platform for various cryptocurrency ETPs, including 12 diversified crypto-asset ETPs by Swiss crypto ETP issuer 21Shares. The company is the first exchange in the world to receive regulatory permission to approve cryptocurrencies as underlying instruments for derivatives.

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