Safello Introduces Physically Backed Staked TAO ETP on SIX Swiss Exchange

Safello, a leading cryptocurrency exchange in the Nordics, has launched its physically backed and staked TAO Exchange Traded Product (ETP) on the SIX Swiss Exchange. This initiative aims to enhance access to Bittensor (TAO) across Europe, enabling trading in U.S. dollars through various online platforms.

Key Takeaways

Safello has listed a new physically backed and staked TAO ETP on the SIX Swiss Exchange.
The product, named the Safello Bittensor Staked TAO ETP, trades under the ticker STAO and has a management fee of 1.49%.
The ETP offers 100% physical backing via staked TAO and aims to provide both price exposure and staking rewards to investors.
Safello will earn a revenue share based on the ETP's assets under management (AUM).
Digital asset investment products face significant outflows, with $2 billion exiting the market in the past week.

Crypto ETPs

New ETP Offers Unique Investment Opportunities

Safello has made a significant move by introducing its Safello Bittensor Staked TAO ETP on the SIX Swiss Exchange. This launch, announced on Wednesday, is part of Safello's effort to widen access to Bittensor (TAO) across Europe, making it easier for investors to access this digital asset through available trading platforms and major online brokers in U.S. dollars.

The ETP, which operates under the ticker STAO, is issued by DDA ETP AG, a partnership formed earlier this year. Investors should note that the product has a management fee of 1.49% and is designed to replicate both the performance and the staking yield associated with Bittensor’s TAO token.

Fully Backed and Staked Structure Maximizes Returns

The new Safello ETP is fully backed with staked TAO. This structure allows investors to obtain direct price exposure while also benefiting from staking rewards generated on-chain. After accounting for service provider fees, these rewards are automatically reinvested into the ETP, enhancing its net asset value over time.

This innovative design creates a total return instrument that combines the potential appreciation of TAO with the compounding benefits of reinvested staking yields. It aligns with the increasing market demand for regulated, yield-generating cryptocurrency products, eliminating the need for individual investors to manage custody, staking mechanics, or blockchain interactions themselves.

Revenue Sharing Model Bolsters Safello’s Growth

As part of its growth strategy, Safello will benefit from a revenue share related to the assets under management (AUM) of the new ETP. While the long-term financial effects remain to be seen and depend largely on the market demand for TAO, this listing is expected to contribute an additional revenue stream for Safello as the company aims to diversify its range of product offerings.

The collaboration with DDA ETP AG reflects Safello’s ongoing commitment to providing compliant cryptocurrency investment options across Europe. The company is focusing its efforts on making digital assets more accessible while ensuring regulatory compliance and protecting investors.

Market Conditions: Digital Asset Products Experience $2B Outflows

In a related development, CoinShares reported that digital asset investment products experienced their most substantial weekly outflows since February, with $2 billion leaving the market last week. This marks the third consecutive week of withdrawals, leading to a total of $3.2 billion withdrawn during this period.

The decline in investments coincides with sharp price drops across major cryptocurrencies. As a result, the total assets under management in digital asset ETPs have decreased by 27% from an early-October high of $264 billion, falling to $191 billion.