Virtune Market Update
A week ago we launched our new product Virtune Staked Ethereum ETP on Nasdaq Stockholm.
We launched this ETP because we want to offer investors a secure, cost-effective and improved way to gain exposure to the world’s second-largest cryptocurrency – Ethereum. We are pleased with the significant interest that has been present since our launch and would like to use this post to explain more about how our new ETP works.
Our ETP is 100% physically backed, which means that we always store Ethereum with our custodian Coinbase, at a value corresponding to at least 100% of the value of all ETPs. We have chosen this structure because it offers a more secure crypto exposure, as the value of each ETP is always backed by 100% rather than relying on the creditworthiness of the ETP issuer.
A common question we receive is regarding staking, and what we want to clarify is that we only stake directly from cold storage. This means that under no circumstances do we transfer cryptocurrencies to any third party outside our control.
By implementing staking, rewards are paid out continuously in the form of new Ethereum. The rewards vary over time and have fluctuated between 4-8% during 2023. These new Ethereum tokens are continually added to the ETP, which leads to the ETP’s price rising beyond the value appreciation of Ethereum. This means that the additional yield generated by staking is reflected in the price daily, and staking rewards begin to generate immediately after investing in the ETP.
As an additional safety measure, we have a so-called Collateral Agent, the purpose of which is to protect the investors in our ETPs. The cryptocurrencies belonging to our ETPs are always separate from Virtune’s balance sheet.
