Introduction of Virtune’s Stablecoin Index ETP
Virtune, a crypto asset management firm based in Sweden, has officially introduced its Stablecoin Index Exchange-Traded Product (ETP), marking a significant milestone for both retail and institutional investors in Europe. This innovative financial product debuted on numerous prominent exchanges, including Nasdaq Stockholm, Nasdaq Helsinki, and Deutsche Börse Xetra under the ticker symbols STABLE and STABLEE.
Features and Accessibility
The ETP, which boasts physical backing by crypto assets, enables investors to gain diversified exposure to a wide range of blockchains and crypto assets that are crucial for the evolution and acceptance of stablecoins. Helena Wedin, who heads ETF and ETP Services at Nasdaq European Markets, emphasized the exchange’s dedication to nurturing innovation in a regulated and transparent market, highlighting the importance of this new offering.
“The emergence of the Virtune Stablecoin Index not only illustrates the flourishing momentum within the ETP sector but also stands as a key achievement for the digital asset community.” – Helena Wedin
The product is accessible through various financial platforms, including notable brokers and banks such as Avanza, Nordnet, SAVR, and Smartbroker, making it easier for a broad audience to tap into the stablecoin realm.
Market Context and Adoption
In recent times, the utilization of stablecoins has surged, particularly among financial institutions eager to harness their advantages, such as swift transactions available around the clock and cost-effective cross-border transfers. This increase in adoption has spurred banks across Europe to consider launching their own variants of stablecoins. For instance, a consortium of nine European banks, including significant players such as UniCredit and ING, announced last year their intent to create a euro-backed stablecoin compliant with the Markets in Crypto-Assets (MiCA) regulation.
Currently, euro-backed stablecoins represent a modest share of the total market value of $306 billion in stablecoins, with estimates placing the euro stablecoin segment at approximately $606.6 million. Leading this segment are tokens like Circle’s EURC, Stasis Euro (EURS), and EUR CoinVertible (EURCV).
Investment Strategy and Management
The Virtune Stablecoin Index ETP is strategically designed to capture the growth potential of the burgeoning global stablecoin market. It does not directly hold stablecoins but is devised to leverage the underlying growth in the sector, particularly focusing on the expanding influence of blockchain technology in the domains of payments, banking, and digital commerce.
According to information from Virtune, the ETP is entirely backed by crypto assets stored securely in cold wallets at Coinbase, with rebalancing occurring on a quarterly basis. Investors should also note a management fee of 1.95% and that trades can be executed in both SEK and EUR. As of November 4, the index demonstrates a significant allocation strategy, with investments divided among Ethereum (42.9%), XRP (23.5%), Solana (18.43%), Chainlink (6.06%), Stellar Lumen (5.75%), and Aave (3.36%).
