According to a post published by ETF Stream, British crypto-investment firm ETC Group has launched new cryptocurrency exchange-traded products (ETPs) for Avalanche (AVAX), Polygon (MATIC), and Cosmos (ATOM).
In addition to tracking the value of the cryptos in question, these ETPs are physically backed, thus meaning that the settlement of crypto ETPs is in the underlying asset, rather than a cash equivalent.
AVAX, MATIC, and Cosmos Get New ETPs
In 2020, ETC Group rolled out the first global Bitcoin ETP. Following the launch of these new ETPs, ETC Group now has eight physically-backed exchange-traded funds (ETFs) that follow the value of various digital assets.
Bradley Duke, the founder of ETC Group, noted that investors have become “increasingly interested” in gaining exposure to the hottest Altcoins to diversify their portfolios. Hence leading to the launch of:
- The ETC Group Physical Avalanche ETP (AVAL);
- The ETC Group Physical Cosmos ETP (ATME);
- The ETC Group Physical Polygon ETP (MTCE).
According to Duke, the latest crypto ETPs from ETC Group offer a substantial level of liquidity for high-quality trading.
Per the announcement, the new ETPs have been listed on Zurich-based ‘Six Swiss Exchange’ and Frankfurt-based ‘Deutsche Boerse’ with total expense ratios (TERs) of 1.95%.
On the Flipside
- Cryptocurrencies are still viewed as a high-risk assets, hence the unpopularity of crypto ETPs among investors.
Why You Should Care
Crypto ETPs offer important diversification benefits for investors because they are shielded from exposure to the factors that drive stock market and macroeconomic performance.