CoinShares introduces two zero management fee index ETPs, improving crypto accessibility for investors
New ETPs with zero management fees provide a seamless experience for investors looking to access high-value digital assets and smart contract platforms.
March 27, 2023 | SAINT HELIER, Jersey – CoinShares (the “Company”) (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF), Europe’s largest digital asset investment firm with USD 2.2 billion* in AUM, today announced the addition of two physically backed Index ETPs to their growing range of crypto ETPs listed on Germany’s main market Xetra.
Issuer formally announced on March 27, 2023 a reduction in management fees to 0.0% pa for both CoinShares Physical Top 10 Crypto Market ETP (Ticker: CTEN) and CoinShares Physical Smart Contract Platform ETP (Ticker: CSSC). Both products track bespoke indices developed in collaboration with Compass Financial Technologies.
CoinShares Physical Top 10 Crypto Market ETP
Management fee: Reduced to 0.0% pa
ISIN: JE00BPRDNL86
Ticker: CTEN
WKN: A3G4FD
Rebalancing plan: Quarterly
Weighting methodology: Market value subject to a maximum weight of 35% for each component
Cost-effective, transparent exposure to the large crypto market via a regulated product. Investors can diversify across the largest crypto projects.
CoinShares Physical Smart Contract Platform ETP
Management fee: Reduced to 0.0% pa
ISIN: JE00BPRDNM93
Ticker: CSSC
WKN: A3G4FE
Rebalancing plan: Quarterly
Weighting methodology: Market value subject to a maximum weight of 35% for each component
Cost-effective, transparent exposure to the infrastructure layer in the digital asset market via a regulated product. Investors can therefore gain exposure to the universe of future dApps, DeFi, NFT and Web3 protocols without having to select them individually.
Frank Spiteri, CoinShares’ Head of Asset Management, commented on the news, “We are pleased to unveil our two innovative new index ETPs to the market today, both of which have had their management fee reduced to 0.0% pa. With CTEN, investors can get broader market exposure with reduced concentration risk compared to single coins, while CSSC offers investors passive exposure to the Web3 revolution in a single diversified, regulated, transparent product.”
CTEN and CSSC were developed to meet market demand for ETP indices that accurately capture trends in the digital asset universe and maximize risk-adjusted performance in the most cost-effective manner possible.
CoinShares reports that equal-weighted indices typically require a larger number of constituents to outperform their market capitalization-weighted counterparts, which directly conflicts with the eligible coin restrictions imposed by most major European exchanges and can lead to higher portfolio turnover costs.
The maximum weight of 35% seeks to reduce the concentration risk of the indices, which the firm believes is particularly relevant in a market that is still so heavily dominated by one asset: Bitcoin.
The quarterly rebalancing schedule and a maximum number of ten constituents allow the products to stay current with changes in the cryptocurrency market without suffering the high trading costs associated with more frequent rebalancing strategies.
Guillaume Le Fur, Founder, CEO of Compass Financial Technologies, added: “We are pleased to expand our partnership with CoinShares with the development and launch of these two new crypto indices. These indices are a reflection of Compass’ continued commitment to innovation in the industry for digital assets and we look forward to further cooperation with the CoinShares team in the future.”
*As of 23 March 2022
About CoinShares Group
CoinShares is the European digital asset manager providing a wide range of financial services across investment management, trading and securities to a wide range of clients that include companies, financial institutions and individuals. The company was founded in 2013, and is headquartered in Jersey, with offices in France, Stockholm, the UK and the USA. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, in the US by the Financial Industry Regulatory Authority. CoinShares is publicly listed on Nasdaq Stockholm under the ticker CS and OTCQX under the ticker CNSRF.
For more information about CoinShares, please visit: https://coinshares.com
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