CoinShares Unveils Staked Algorand ETP on Deutsche Boerse

The prominent European investment firm, CoinShares, announced the launch of physically-backed staked Algorand ETP.

Staked Algorand ETP (RAND)

According to the official press release, the new crypto investment product will launch on Germany’s primary market, Xetra, operated by Deutsche Boerse. CoinShares Physical Staked Algorand, under the ticker RAND, will utilize the firm’s proprietary technology platform, Galata, that enables investors to earn an additional yield of 2% of the staking reward associated with participating in the Algorand blockchain’s security.

Despite the volatility across digital asset markets in recent weeks, CoinShares’ Head of Product – Townsend Lansing – revealed the demand for its product continues to grow, especially the range for bankruptcy-remote, physically-backed staked ETPs. He went on to add,

“An Algorand ETP with additional staking rewards was a key part of our long-term product strategy, and we are excited to be launching against the backdrop of positive regulatory news following the finalization of the Markets in Cryptoassets Regulation in Europe, which we see as a fantastic first step towards a comprehensive and transparent regulatory regime governing digital assets.”

The new product launch comes days after CoinShares’ acquisition of the AIFM-regulated crypto asset manager – Napoleon Asset Management. It is expected to help the investment firm AIFM-compliant products and services and expand its footprint across the European Union market.

CoinShares’ Finances Hit Market Drawdown

As a result of the industry-wide downturn, CoinShares’ Q1 2022 financial results took a significant hit. During the first three months of the year, the firm’s revenue shrunk to $35 million, a decline of 42% since the previous year’s $50 million revenue.

In Q1 2022, the total comprehensive income of the company slumped by nearly 40% from the same quarter last year. Additionally, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also slumped by over 45% in the first quarter of the year compared to 2021.

CoinShares’ Chief Security Officer Meltem Demirors recently asserted that the crypto winter may persist until the physical winter in Q4 and even the early Q1 next year. While speaking with CNBC, the exec said that the full impact of a crypto bear market has not been realized yet and added that there are no catalysts for a potential reversal in the near term.