CoinShares Launches First-Ever SEI Token ETP With a “Zero-Fee, 2% Yield” Model

• CoinShares launched SEI ETP to give access to European investors.
• SEI tokens will back the ETP with an annualized 2% staking yield.
• SEI’s price spiked 10% shortly after the latest ETP launch by CoinShares.

Crypto asset management firm CoinShares has launched an exchange-traded product (ETP) allowing investors to invest in SEI, a Layer-1 blockchain supporting high-speed, low-latency trading infrastructure. 

According to reports, CoinShares will not charge management fees on the newly launched product; instead, the asset manager will offer 2% staking yield to benefit investors.

A “zero-fee” ETP that offers a 2% staking yield

The newly listed product will trade under the ticker CSEI on the SIX Swiss Exchange and will become the first investment vehicle to offer direct access to the SEI token. CoinShares stated that the product is designed to remove hurdles for institutional investors, such as complex custody requirements.

SEI tokens will reportedly back the newly launched ETP with an annualized 2% staking yield to investors. The latest rollout is one of CoinShares’ initial exchange-traded products. Meanwhile, it is worth noting that the asset management firm just recently received the Markets in Crypto Assets (MiCA) license. That qualifies it as the first European asset management firm to do so. 

European vs. US crypto ETP market

The SEI launch on CoinShares highlights the growing trend of crypto ETPs launching in Europe, with top asset management companies creating avenues to allow institutional investors to participate in the cryptocurrency sector. 

However, it is worth noting that the high frequency of products in Europe has not matched the volume of inflow in US spot ETFs.

Data from the JustETF aggregation platform shows that ‌108 Europe-based ETPs account for roughly €13.92 billion, equivalent to $16.21 billion in assets under management (AUM). Meanwhile, BlackRock’s IBIT alone in the US ETF market commands $86 billion in net assets. SosoValue data reveals that spot Bitcoin ETFs have ‌$151.4 billion in net assets.

Nonetheless, the latest event triggered an immediate spike in SEI’s price, with the cryptocurrency surging nearly 10% in the early hours of Tuesday to trade for $0.3451 at the time of writing, according to TradingView’s data.