Digital asset investment firm CoinShares has announced the launch of a new physically-backed exchange-traded product (ETP) that tracks the price of Cardano (ADA). The ETP is designed to share the rewards of staking cryptocurrency with investors.
As reported by ETF Stream, CoinShares Physical Staked Cardano ETP (CSDA) is listed on Deutsche Boerse with a total expense ratio of 1.5%, with expenses offset by product staking rewards.
The CoinShares website shows that the total expense ratio has dropped to 0% and investors can expect staking rewards of 3% per year. Each CSDA share is backed by 1 ADA token and staking rewards accumulate daily.
Staking allows investors to participate in the Cardano consensus mechanism and be rewarded for it, similar to how miners on Proof-of-Work (PoW) blockchains are rewarded for their work on the blockchain. chain.
CoinShares notes that all coins staked do not move from the custodian and the ETP remains 100% physically backed. According to data from PoolTool, Cardano currently has 69.5% of its circulating supply staked across 2,993 active pools, meaning that $18.3 billion ADA is currently staked.
The figure is down from more than 70% at the end of last year. The percentage of the circulating supply of ADA that is being staked was likely reduced after the launch of decentralized applications on Cardano, which increased the demand for ADA.
As previously reported, the number of addresses holding long-term ADA grew 32.1% last month to 408,000, after growing 10.9% in January and 5.78% in December, suggesting that HODLers continue to accumulate cryptocurrencies.
According to CryptoCompare’s latest asset report, the number of ADA-bearing addresses grew 5.9% to a new all-time high in February, largely thanks to an increase in long-term headlines and a 13.4% increase. on cruise ships, which amounted to 3.62 million addresses. The number of merchants on the network fell 25.2% to 770,000.
Last month, CoinShares launched two more physically-backed ETPs that track Tezos (XTZ) and Polkadot (DOT). CoinShares notably launched Europe’s first Bitcoin ETP in 2015, and has been launching products that offer investors exposure to other crypto assets ever since. These include products for Ethereum (ETH), Litecoin (LTC), and XRP.