Each unit of ETP will represent 0.20 Litecoin. CoinShares, a UK-based digital asset manager, announced the launch of a new exchange-traded product (ETP) powered by Litecoin on Tuesday. ETP will initially be listed on the SIX Swiss Exchange under the code LITE.
Each unit of ETP, called CoinShares Physical Litecoin, will be supported with 0.20 Litecoin at launch. It will be traded against the US dollar as the base currency and will have an annual base fee of 1.5 percent.
Demand for Common Crypto Products Increases
Frank Spiteri, chief revenue officer of CoinShares, said the following about the new product:
As the demand for digital assets steadily increases among the traditional investment community, we are beginning to see green shoots of demand for investment risks other than the first two raids.
CoinShares is a leader in creating new ways for investors to access the digital asset ecosystem, and LITE is the next step in bringing a more comprehensive and diversified ETP to the market.
Litecoin, created by former Google and Coinbase engineer Charlie Lee, is one of the first mainstream altcoins created from the fork of the Bitcoin codebase. The cryptocurrency is intended to be used in smaller transactions where Bitcoin is not efficient and is among the top 10 cryptocurrencies with a market value of over $ 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.
Recently, the company partnered with Canadian 3iQ to launch a Bitcoin ETF.
“LITE is rising right after our Bitcoin and Ethereum product launch 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 into our new product line,” said Townsend Lansing, product head of CoinShares.