CoinShares, a UK-based digital asset manager, announced on Tuesday the launch of a new exchange-traded product (ETP), which is backed by Litecoin. The ETP will be initially listed on SIX Swiss Exchange under the ticker LITE.
Dubbed CoinShares Physical Litecoin, each unit of the ETP will be backed by 0.20 Litecoins at the launch. It will be traded against the US dollar as the base currency, and there will be a yearly base fee of 1.5 percent.
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Commenting on the new product, Frank Spiteri, chief revenue officer at CoinShares, said: “As demand for digital assets amongst the traditional investment community steadily increases, we are starting to see the green shoots of demand for investment exposures outside of the top two dominant networks.”
“CoinShares is the leader in creating novel ways for investors to access the digital asset ecosystem, and LITE is the next step on a path to bringing a more comprehensive and diversified offering of ETPs to market.”
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Created by former Google and Coinbase engineer Charlie Lee, Litecoin is one of the first mainstream altcoins created by forking the Bitcoin codebase. The cryptocurrency is intended to be used in the smaller transactions for which Bitcoin is not efficient and is among the top 10 cryptocurrencies with a market capitalization of more than $15 billion.
CoinShares is a major European crypto-focused financial services provider. Apart from Litecoin, it also manages investment instruments backed by Bitcoin and Ethereum.
“LITE comes hot on the heels of our Bitcoin and Ethereum product launches in 2021 and will benefit from the same robust and transparent physically-backed product structure. We are excited to add exposure to such a well-accepted and widely traded crypto-asset to our new product line,” said Townsend Lansing, CoinShares’ head of product.