DeFi Expands Exchange-Traded Crypto Push With Three New Vehicles

(Bloomberg) -- The universe of cryptocurrency vehicles trading on Europe’s exchanges is poised to get a little bigger.

Valour Inc., a Swiss asset-management company owned by DeFi Technologies Inc., said it is launching three such products tracking the Cardano, Polkadot, and Solana digital currencies. They are set to start trading on the Euronext exchanges in Paris and Amsterdam on April 6.

The launches will add to an increasingly competitive effort to seize on investors’ interest in products that track cyptocurrences, with dozens of such vehicles already traded on European exchanges. There is about $7.3 billion invested in exchange-traded crypto products in Europe, according to CoinShares International Ltd Chief Revenue Officer Frank Spiteri, who expects that to more than double by 2025. 

Valour already has several crypto products listed across European exchanges, including those focused on Bitcoin and Ethereum. The new ones will charge a management fee of 1.9%.

“More large institutions will enter and we expect even greater competition on pricing,” said DeFi Chief Executive Officer Russell Starr. “What will differentiate the winners and losers is expertise in product innovation and a hyper focus on providing added value to investors.”

In Europe, XBT Provider and 21Shares lead the market in terms assets in crypto exchange-traded products, with WisdomTree also a major presence. Fidelity listed its first Bitcoin ETP on the Deutsche Börse and SIX Swiss Exchange this year with a total expense ratio of 0.75%. 

©2022 Bloomberg L.P.