The two ethereum ETNs on Stockholm’s Nasdaq have attracted more than $10 million in assets under management (AUM) within just one week, according to a press release. Ryan Radloff, Principal at CoinShares, says:
“When the group’s bitcoin ETNs – which are now at $330 million in AUM – launched in 2015, it took one year to attract the initial $10 million in AUM.
The Ether Trackers achieved that in less than a week. Initial demand for the Ether ETN from investors of all types has been exceptional, driving substantial volume for an un-seeded ETN; especially one in an emerging asset class. The community that was demanding the product has shown up in full force; and now, the community has a new request – research.”
The ETN is the first stock like asset in the world to track the movements of eth’s price. It can be bought through a normal portfolio, including pensions, just like any other stock traded on Stockholm’s Nasdaq.
To provide investors with further information, the company that manages the ETN, Coinshares, is launching a research arm with a full team dedicated to analyzing the top five cryptocurrencies. Radloff says:
“When we looked around at the available research in crypto to date, it either revolved strongly around bitcoin, or took a generalist approach to ‘the next biggest crypto-assets.’
While seminal work has been done on bitcoin as an asset – the same could not be said for ether. With this asset highlight, we aim to rectify that situation.”
The research team will assess fundamentals as well as more speculative aspects of eth, while further comparing it to more traditional asset classes and bitcoin. Christopher Bendiksen, Head of Research at CoinShare, says:
“We took a specific approach and laid out the foundational pillars to understanding ether as an asset, work which we intend to build on in analyses to come.
What you’ll find in this research coverage is a pragmatic discussion with a simple valuation approach to consider. You won’t find flashy price targets, and a bunch of marketing.”
The ETN’s volumes are a fraction of exchanges, which handle half a billion and at at times as high as $3 billion, but unlike the back and forth trading in exchanges, this is fresh capital for the ETN.
Which suggests some significant interest in the second biggest digital currency considering the amount invested in just one week.