A Swiss fintech company is launching the first Crypto Exchange Traded Products (ETPs) for Cardano (ADA) and Stellar Lumens (XLM).
On April 26th, 21Shares AG listed Stellar XLM ETP (AXLM) and Cardano ADA ETP (AADA) on the Swiss stock exchange (SIX Exchange) with a basic fee of 2.5% per year. In addition, the two investment products will be added to the multilateral trading facilities (MTFs) in Stuttgart and Düsseldorf.
The Company says Given the growing interest in Cardano and Stellar Lumens, the company is expanding its list of exchange-traded crypto products. According to 21Shares, demand for crypto ETPs has increased 200% since the first quarter of 2021 as institutional investors raise funds for institutional and open ETPs, driving the surge in new inflows.
ETPs track underlying securities and other financial instruments. Your share price is also derived from these assets. AXLM and AADA replicate the performance of Stellar Lumens and Cardano, respectively.
“Both AXLM and AADA ETPs allow customers to diversify and engage in cross-border transitions between two currency pairs, while Cardano helps build smart contracts with proof of stakes at a level not previously possible with your bank or broker was possible. The ETP structure is 100% physically secured, separate and replicates 1: 1 the tracking of both crypto assets. “
Each AXLM unit is supported by approximately 40 XLMs and AADA by 16 ADAs at launch. Coinbase will hold the company’s Stellar Lumens collateral while Kingdom Trust will hold the ADA collateral.
Stellar Lumens aims to provide a smooth and affordable method for transferring funds and, at the time of writing, holds a market cap of around $ 9 billion. Cardano is a blockchain network that competes with Ethereum and has a market capitalization of around $ 35 billion.
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Selected image: Shutterstock / Larich