CoinShares Introduces Two Zero Management Fee Index ETPs, Enhancing Crypto Accessibility for Investors
New zero management fee ETPs provide seamless experience for investors looking to access large cap digital assets and smart contract platforms.
March 27, 2023 | SAINT HELIER, Jersey - CoinShares (“the Company”) (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF), Europe's largest digital asset investment firm with US$2.2bn* in AUM, today announced the addition of two physically-backed Index ETPs to their growing range of crypto ETPs listed on Germany’s main market Xetra.
The Issuer formally announced on March 27, 2023 a reduction in the management fees to 0.0% p.a. for both the CoinShares Physical Top 10 Crypto Market ETP (Ticker: CTEN) and CoinShares Physical Smart Contract Platform ETP (Ticker: CSSC). Both products track bespoke indices developed in partnership with Compass Financial Technologies.
Management Fee: Reduced to 0.0% p.a.
ISIN: JE00BPRDNL86
Ticker: CTEN
WKN: A3G4FD
Rebalance schedule: Quarterly
Weighting methodology: Market Capitalization subject to a maximum 35% weight for each constituent
Cost-efficient, transparent exposure to the large cap crypto market via a regulated product. Investors can diversify across the largest crypto projects.
Management Fee: Reduced to 0.0% p.a.
ISIN: JE00BPRDNM93
Ticker: CSSC
WKN: A3G4FE
Rebalance schedule: Quarterly
Weighting methodology: Market Capitalization subject to a maximum 35% weight for each constituent
Cost-efficient, transparent exposure to the infrastructure layer of the digital asset market via a regulated product. Investors can therefore gain exposure to the universe of future dApps, DeFi, NFT and Web3 protocols without having to select them individually.
Frank Spiteri, CoinShares’ Head of Asset Management, commented on the news, “We are excited to unveil our two innovative new Index ETPs to the market today, both of which have had their management fees reduced to 0.0% p.a.. With CTEN, investors can gain wider market exposure with reduced concentration risk compared to single coins, whilst CSSC offers investors passive exposure to the Web3 revolution in a single diversified, regulated, transparent product.”
CTEN and CSSC were developed to meet demand in the market for Index ETPs that accurately capture trends in the digital asset universe and maximise risk-adjusted performance in the most cost-efficient manner possible.
CoinShares reports that equally-weighted indices usually require a larger number of constituents to outperform their market-cap weighted counterparts, which directly conflicts with the eligible coin restraints imposed by most major European exchanges, and which can lead to higher portfolio turnover costs.
The 35% maximum weight seeks at reducing the concentration risk of the indices, which the firm believes is particularly relevant in a market still so heavily dominated by one asset: Bitcoin.
The quarterly rebalancing schedule and a maximum number of ten constituents allows the products to stay up-to-date with changes in the cryptocurrency market without suffering from the high trading costs associated with more frequent rebalancing strategies.
Guillaume Le Fur, Founding Partner, CEO at Compass Financial Technologies, added, “We are delighted to be extending our partnership with CoinShares with the development and launch of these two new crypto indices. These indices are a reflection of Compass’s continued commitment to innovation in the digital assets industry and we look forward to further collaboration with the CoinShares team in the future.”
*As of March 23, 2022
About the CoinShares Group
CoinShares is the European digital asset manager that delivers a broad range of financial services across investment management, trading and securities to a wide array of clients that includes corporations, financial institutions and individuals. Founded in 2013, the firm is headquartered in Jersey, with offices in France, Stockholm, the UK and the US. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, in the US by the Financial Industry Regulatory Authority. CoinShares is publicly listed on the Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker CNSRF.
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