Swedish Asset Manager Launches World’s Second Staked Cardano ETP

Virtune AB, a Swedish regulated digital asset manager and issuer of crypto exchange-traded products (ETPs), has expanded its crypto offerings to the European market with the new launch of the Virtune Staked Cardano ETP and the Avalanche ETP.

It’s the world’s second investment product that offers exposure to ADA, one of the largest cryptocurrencies by market cap.

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Trading on Nasdaq Helsinki, these two new products offer investors exposure to ADA and AVAX, two major cryptocurrencies with respective market caps of $27 billion and $10 billion, according to CoinGecko data.

According to the company’s press announcement, both ETPs are physically backed 1:1 by the underlying assets, held in cold storage by Coinbase, Virtune’s custodian. They are denominated in euros and available to Finnish investors through brokers and banks, including Nordnet.

Each fund charges an annual management fee of 1.49%. Unlike the Avalanche ETP, the Cardano-tied one incorporates a staking mechanism. Virtune notes that investors can earn an additional 2% annual return through staking rewards. These rewards are continuously added and reflected in the daily price of the ETP.

Explaining the company’s recent push into the Finnish market, Christopher Kock, CEO of Virtune, pointed to the company’s initial success after launching its crypto ETPs on Nasdaq Helsinki.

On January 20, Virtune debuted a batch of crypto ETPs, including Virtune Bitcoin ETP (VIRBTCE), Virtune Staked Ethereum ETP (VIRETHE), Virtune XRP ETP (VIRXRPE), Virtune Staked Solana ETP (VIRSOLE), and Virtune Crypto Altcoin Index ETP (VIRALTE).

With five products, the entry marked the largest simultaneous crypto ETP launch on a regulated market in the Nordics’ history. These are also the first regulated staked ETPs available to Finnish investors.

Virtune’s staked Cardano ETP is the second following CoinShares’ staked Cardano product launched in 2022.

Will the US Follow Europe’s Lead on Staked Crypto ETPs?

It’s widely known that the U.S. market for staked crypto ETP is currently underdeveloped, mostly due to the Securities and Exchange Commission’s stance that crypto staking may be classified as securities.

Under the SEC’s view, crypto staking meets the criteria of an investment contract, first, because users lock up their cryptocurrencies expecting potential returns. The regulator also sees staking programs as investment contracts when they involve pooled investor assets and returns based on the efforts of a third party.

The growth of staked crypto ETPs, therefore, is hindered. The SEC has also taken enforcement actions against companies offering unregistered securities, like Kraken, adding even more uncertainty around staking regulations.

Critics argue this approach stifles innovation and compromises the U.S.’s competitive edge in the global crypto market.

However, signs point towards a potential shift in 2025 since plenty of big changes on the legislative front and regulatory approach to the industry are underway.

New Faces!

The SEC is undergoing a leadership restructuring, moving away from its “enforcement-over-guidance” approach seen under former Chair Gary Gensler.

At the Commodity Futures Trading Commission (CFTC), a restructuring of its enforcement division will be soon unveiled, according to FOX Business journalist Eleanor Terret, which will target the removal of regulation by enforcement.

The reorganization will reportedly introduce two new task forces, the Complex Fraud Task Force and the Retail Fraud and General Enforcement Task Force, aimed at better handling cases of fraud, manipulation, and other abuses to ensure market integrity. The restructuring also seeks to improve consistency, fairness, and due process in CFTC enforcement actions.

A more pro-crypto SEC and CFTC sparks hope for a wave of approvals for altcoin ETFs, including those involving staking features. Previously, fund managers had to remove staking elements from their spot Ethereum ETF applications to meet the SEC’s stance.

Global trends are playing a role, as jurisdictions worldwide, especially in Europe, are more open to diverse types of crypto investment products. This could influence the U.S., the biggest ETP market.