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Frankfurt-based crypto asset management group Iconic Funds announced today that it has expanded the variety of its wrapped crypto exposures available to investors by launching the world’s first ApeCoin exchange-traded product (ETP).
This launch is the company’s fourth product to be physically backed by cryptocurrencies.
The crypto asset manager disclosed that it listed the Iconic Physical ApeCoin ETP on the Boerse Stuttgart on Wednesday with a total expense ratio (TER) of 1.49%.
The ApeCoin ETP tracks the CMBI ApeCoin index (that includes Bitcoin, Ethereum and Litecoin on its basket), therefore offering physical exposure to their underlying assets while being fully collateralized by Coinbase Custody.
State Street, a US-based bank, will perform administrative services to support the issuance of the ApeCoin ETP.
Just like other Iconic Funds crypto funds, investors in the ApeCoin ETP can apply for physical delivery of underlying coins, the company said.
Michael Geister, head of crypto ETPs at Iconic, talked about the development and said: “The ETP will provide exposure to the ecosystem built around the Bored and Mutant Ape Yacht Club NFTs developed by Yuga Labs. BAYC (Bored Ape Yacht Club) is one of the most valuable NFT collections available, made famous by stars like Make Cuban or Serena Williams. Through ApeCoin investors have access to the growing NFT market.”
Besides the launch of the product, the company also disclosed plans to partner with third parties to launch actively managed white-labeled crypto ETP products from its platform.
Patrick Lowry, CEO of Iconic, further elaborated: “We look forward to issuing additional, highly innovative crypto ETPs in the near future, as well as partnering with incumbent financial institutions for white-labelled crypto ETP products.”
Last year, the firm launched its first product (Bitcoin ETP) in the European market. The company then launched a carbon offset Bitcoin ETP, which was followed by Europe’s cheapest Ethereum ETP.
Europe’s Crypto ETPs Seeing High Demand
The latest development by Iconic Funds shows that cryptocurrency exchange-traded products (ETPs) continue heating up with a series of new listings in Europe. That is a contrast in the US with the prospects of a physical Bitcoin ETF that is still at a standstill in the region.
In 2020, crypto ETPs in Europe surpassed $1 billion in inflows and since then demands have continued to show no signs of slowing down.
In February this year, European digital asset-linked ETPs witnessed inflows of over $80 million.
Financial providers said that the increase in demand comes as no surprise. The convenience and security of cryptocurrency exposures via a regulated product are attractive to both retail and institutional investors.
In February this year, Fidelity International became the latest issuer of a European ETP with the launch of its Fidelity Physical Bitcoin ETP on Germany’s Deutsche Börse Xetra.
Early that month, 21Shares expanded its crypto exchange-traded products with the launch of three DeFi ETPs. The firm launched DeFi products (including Aave, Chainlink, and Uniswap (UNI) as their underlying assets on the BX Swiss exchange.
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