The world’s first Solana ETP (ASOL) is being launched on the regulated market of the Swiss stock exchange (SIX Exchange). The ASOL ETP will also provide additional yield through staking rewards by validating transactions on the Solana blockchain.
Solana (SOL) is a highly functional open source project that banks on blockchain technology’s permission-less nature to provide decentralised finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland headed by developer Anatoly Yakovenko.
The Solana Protocol
One of the essential innovations Solana brings to the table is the proof-of-history (PoH) consensus. Solana is known in the cryptocurrency space because of the incredibly short processing times the blockchain offers. Solana’s hybrid protocol allows for significantly decreased validation times for both transaction and smart contract execution. With lightning-fast processing times, Solana has attracted a lot of institutional interest as well.
The Solana protocol is intended to serve both small-time users and enterprise customers alike. One of Solana’s main promises to customers is that they will not be surprised by increased fees and taxes. The protocol is designed in such a way as to have low transaction costs while still guaranteeing scalability and fast processing, key aspects to which the 21Shares’s Listing committee concluded to launch the underlying asset as an ETP.
Demand for crypto ETPs
Despite the recent volatility markets, 21Shares have gathered more than 55 Million USD in institutional net inflows in June across all its ETPs. ASOL ETP will allow clients to diversify and gain exposure to this inspiring blockchain technology to which its native coin is currently ranked 14 on CoinMarketCap.
“Following an active review to extend our innovative and forward-thinking asset launches, we are on track to deliver more new ETPs demanded by clients and as a result we remain the market leading crypto ETPs issuer of choice. European institutions continue asking us for simple and effective access to these new blockchain technologies which we can deliver based on our successful track record. These new ETPs deliver what clients asked for and we expect to add 2 new crypto ETPs in the next months together with new listing and trading venues.” - Hany Rashwan, CEO 21Shares AG
The ETP structure is 100% physically collateralised, segregated and replicates 1:1 the tracking of the crypto asset. Coinbase will assume custody for SOL. Physical replication for ASOL aims to track the performance of SOL coin with each unit of the ETP backed by approx. 0.667 SOL at launch with a base fee of 2.5% p.a and will also be available on the Stuttgart and Dusseldorf MTFs.