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Wednesday, Aug 10, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Technology

Coinshares and German crypto market Xetra offer Algorand ETP

Exchange Traded Products’s are usually types of securities that track underlying security, index or other financial instruments.

Coinshares (Nasdaq First North Growth Market: CS) (OTCQX: CNSRF) is now listing its physically-backed staked Algorand exchange-traded product (ETP) on Germany’s primary market, Xetra.

Coinshares physical staked Algorand product is the latest ETP to use the company’s technology platform, Galata. Galata gives investors the chance to get in on the rewards associated with participation in the Algorand blockchain’s security.

“Despite the volatility seen across digital asset markets in recent weeks, we are encouraged by the demand we’re seeing for our products, especially our range of bankruptcy-remote, physically-backed staked ETPs. An Algorand ETP with additional staking rewards was a key part of our long-term product strategy, and we are excited to be launching against the backdrop of positive regulatory news following the finalisation of the Markets in Cryptoassets Regulation in Europe, which we see as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets,” said Townsend Lansing, Coinshares Head of Product.

Coinshares is a European digital asset investment firm, managing billions of assets for investors across the world. The specifics of this company involve giving access to a new, expanding digital asset ecosystem through the latest financial products and services with trust and transparency.

CoinShares Physical Staked Algorand involves:

  • Management Fee: Reduced to 0.0% p.a.
  • Staking Reward: 2.0% p.a.
  • Ticker: RAND

Algorand was launched in 2019. It’s been described as the first Pure Proof of Stake (PpoS) blockchain. Unlike normal Proof of Stake (PoS) networks, any participant on the Algorand network can be a validator on the blockchain, and the minimum stake required is relatively low (0.1 ALGO). Unlike most blockchains, ALGO validators can secretly choose themselves to be participate in determining blockchain consensus, which can help maintain privacy and protect against attacks. As an extra benefit, because ALGO uses a Proof-of-Stake variant for its consensus mechanism, it’s one of the few environmentally friendly, carbon-negative blockchains out there.

ETP’s are usually types of securities that track underlying security, index or other financial instruments. In this case, it’s cryptocurrency functioning on a blockchain. ETP’s are traded on exchanges, similar to stocks, and the prices fluctuate either daily or sometimes hourly, depending on the volatility of the underlying asset. The share prices of the ETPs come from the underlying investments they track.

In this case, it’s the Algorand cryptocurrency.

Source: Coingecko

Algorand has dipped since April from $0.73 to where it’s presently trading at $0.32, which keeps pace with the rest of the cryptocurrency market.

The company’s staked ETPs are intended to give the issuer the ability to share staking rewards with investors by reducing the management fee and increasing the coin entitlement of the ETP each day as staking awards build. Staked coins don’t leave custodial control while being staked, and the ETP’s remain 100 per cent backed at all times.

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