Figment Europe and Apex Group to Launch Ethereum and Solana Staking ETPs on SIX Swiss Exchange
Institutional staking services provider Figment Europe and Apex Group are set to launch Ethereum (ETH) and Solana (SOL) staking exchange-traded products (ETPs) on the SIX Swiss Exchange next week via Issuance.Swiss AG.
The Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF) products will debut on March 12, offering institutions convenient access to staking rewards through traditional brokers or banks under a familiar ETP wrapper.
“We have worked hard to be in a position to support the launch of the first Ethereum and Solana staked ETPs by Issuance.Swiss AG on a regulated trading venue here in Switzerland,” said Figment CEO Lorien Gabel. “Our objective is now near complete and marks an important step towards the introduction of staking products in conventional ETP form for the still-nascent crypto market.”
Why Ethereum and Solana?
Staking rewards on Ethereum and Solana are incentives received for locking up the respective cryptocurrencies to support the operation and security of the blockchain networks. Ethereum and Solana were prioritized for the ETPs due to strong demand from some of Figmentβs largest customers.
“Our goal is to be the go-to staking option for institutions managing crypto-assets, offering seamless access through custodians, exchanges, and portfolio management systems,” said Gabel. “While we remain open to exploring other networks with our partners, our current focus is on optimizing the ETPs for ETH and SOL.”
How the ETPs work
The Ethereum and Solana staking ETPs aim to make it easier for institutions to access staking rewards from leading proof-of-stake assets. The products benefit from full collateralization and over 50% staking utilization, returned to investors. This allows conservative institutions to safely hold this asset class via an ETP without directly funding Ethereum or Solana validators.
The staking rewards generated via the ETPs include maximal extractable value (MEV). MEV refers to the maximum value that validators can extract in the block production process, in addition to the standard block reward and transaction fees, which can potentially be passed on to stakers.
Although similar staking ETPs are already available via asset managers such as CoinShares and 21Shares, Figment seeks to differentiate its offering by leveraging its prior expertise in developing staking infrastructure. Issuance.Swiss will handle the issuance of the ETPs.
The Figment ETPs both come with a management fee of 1.5%. This compares to a 1.49% fee for 21Shares’ ether product and 2.5% for its Solana ETP. CoinShares offers a reduced management fee of 0% for its products, though that is achieved by sharing the staking rewards.
“This product distinguishes itself from other staking ETP providers by prioritizing transparency and rewards performance,” said Gabel. “The ETHF product tracks a unique total rewards benchmark developed by MarketVector, utilizing Figment’s staking rewards rate. This benchmark ensures transparency by avoiding censorship of reward types like MEV.”
The prospect of ether or solana ETFs in the US
With U.S. spot bitcoin ETFs launching successfully in January, attention has turned toward the prospect of spot ether ETFs coming next. Big-name firms, including BlackRock, Fidelity, and Franklin Templeton, have applied for a spot ether ETF over the last few months. However, opinions on the prospect of approval from the Securities and Exchange Commission this year remain mixed.
“Without my SEC magic 8-ball it’s hard to tell,” said Gabel. “Similar to the process leading to bitcoin’s approval, the SEC’s feedback will likely provide clarity on whether staking will be included in these products which is what we’re focusing on.”
While spot ether ETFs might be next, following a similar approval process to that of CME futures and futures ETFs prior to the approval of bitcoin spot ETFs in the U.S., the prospects of spot ETFs for solana or other crypto assets remain remote for now.
Hot Take: Figment Europe and Apex Group to Launch Ethereum and Solana Staking ETPs
Institutional staking services provider Figment Europe and Apex Group are teaming up to launch Ethereum and Solana staking exchange-traded products (ETPs) on the SIX Swiss Exchange via Issuance.Swiss AG. The Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF) products will be available from March 12, providing institutions with convenient access to staking rewards through traditional brokers or banks. The decision to prioritize Ethereum and Solana for the ETPs was driven by strong demand from Figmentβs largest customers. This move marks an important step towards introducing staking products in conventional ETP form for the emerging crypto market.
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