Jersey-based CoinShares Launches Physically-backed Litecoin (LTC) ETP on SIX Exchange

Jersey-based CoinShares Launches Physically-backed Litecoin (LTC) ETP on SIX Exchange

  • CoinShares launches Litecoin electronic-traded products (ETP) on Tuesday.

One of Europe’s largest digital asset investment firms, CoinShares, announced the launch of its physically-settled Litecoin electronic-traded products on Swiss-based SIX exchange. Each ETP contract will be backed by 0.20 LTC (~$38, as of writing), and will trade under the ticker symbol, LITE.

The Litecoin ETP is the seventh digital asset added to the company’s portfolio, adding to the $4 billion assets under management by the investment firm. CoinShares Physical, the firm’s ETP investment arm, holds two-thirds of its assets in Bitcoin, with Ethereum gradually taking up a larger share. The post reads,

“Each unit of LITE is backed with 0.20 litecoins at launch, providing investors with passive exposure to the Litecoin network’s native asset.”

LITE will carry a base fee of 1.5% p.a., and the base currency is set to USD only. Chief Revenue Officer of CoinShares, Frank Spiteri commented,

“As demand for digital assets amongst the traditional investment community steadily increases, we are starting to see the green shoots of demand for investment exposures outside of the top two dominant networks.”

The Jersey-based firm reported an explosive quarter in Q1 2021, with an 11% growth in total Bitcoin and Ethereum inflows reaching the $4.5 billion mark.

Litecoin currently trades at $223 and ranks ninth on Coingecko’s largest market cap list with a total market cap of $14.8 billion.

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Author: Lujan Odera

Bakkt Launches Testing Phase Of Its Physical Bitcoin Futures Contracts

Bakkt-Launches-Testing-Phase-Of-Its-Physical-Bitcoin-Futures-Contracts
  • Bakkt is launching the testing phase of its Bitcoin futures contracts
  • The goal is to offer physically-backed futures contracts to crypto investors

A testing phase of Bakkt, the platform created by the Intercontinental Exchange (ICE), is going to be launched today. This comes almost after a year since releasing and announcing its plans to offer physically-backed Bitcoin (BTC) futures contract to larger investors.

Bakkt Gets Ready To Test Its Bitcoin Futures Contracts

After failed attempts and delayed dates to launch its Bitcoin futures contracts to the market, Bakkt is going to be testing today this new solution for larger investors. Back in May this year, Bakkt announced that it was going to start testing the Bitcoin futures contracts in July. A few weeks later, they provided a specific launch date, July 22nd.

According to the company, they will be testing a monthly and a daily contract that the firm wants to offer to traders through the ICE Futures U.S. and that will be cleared through ICE Clear U.S. At the moment, there is no information about what the firm wants to achieve with this testing. Clearly, they want to check whether the systems respond as expected, that the processes were implemented correctly and they will also try to find bugs and other issues that would be fixed before the launching of the official network.

The Chicago Mercantile Exchange (CME) has been offering bitcoin futures contracts since December 2017 alongside the Chicago Board Options Exchange (CBOE) that decided to shut down its operations a few months ago.

Bakkt is not the only company trying to launch physically-backed Bitcoin futures contracts in the United States. For example, LedgerX and ErisX have also received approvals from the Commodity Futures Trading Commission (CFTC) a few weeks ago to offer their own products. However, none of these companies has released a timeline for their products.

The cryptocurrency market is getting more mature as time passes and new and respected companies are entering the market to offer services to larger investors that do not trust the current infrastructure in the crypto space.

Bakkt has also acquired Digital Asset Custody Company (DACC) that provides crypto custody solutions for institutional investors. This is something very important because regulators claimed that the market did not have the necessary custody services for it to continue expanding.

Individuals in the cryptocurrency market are trying to understand which is the impact that the testing period will bring to the market and the price of Bitcoin. Currently, each Bitcoin can be purchased for $10367 according to data provided by CoinMarketCap. It also has a market capitalization of $185 billion.

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Author: Carl T