CoinShares, a London based asset manager has launched a new physically backed Litecoin exchange-traded product (ETP) on the Swiss SIX exchange. The CoinShares Physical Litecoin (LITE) is available for institutional investors to trade in US dollars, euros, or Swiss francs. Each LITE share will be backed by 0.20 Litecoin (LTC) providing direct exposure to the underlying asset at the cost of a 1.5% management fee per annum.
Litecoin is currently the 8th Largest cryptocurrency by market capitalisation (~$16.5Bn as of writing) and 4th by daily traded volume (~$7Bn as of writing). This is the third ETP from CoinShares and follows on from their Bitcoin and Ethereum ETPs launched earlier this year. All coins are custodial by Komainu , a joint venture between CoinShares, Ledger and Investment bank Nomura.
Frank Spiteri, Chief Revenue Officer at CoinShares said of the announcement:
“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.”
Townsend Lansing, Head of Product at CoinShares, added:
“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.”
The Swiss Six exchange is also notable for being the exchange to launch the first multi-crypto ETP back in 2018 under the ticker HODL5 (maintained by MVIS) that also granted exposure to litecoin along with a basket of other top crypto assets.