Virtune Launches Europe's First Stablecoin Index ETP

Swedish crypto asset management firm Virtune has introduced the Stablecoin Index ETP on European exchanges, marking a significant development in the crypto market. This product allows investors to gain exposure to a wide range of blockchains and assets that support stablecoins, fostering participation in the growing stablecoin ecosystem.

Key Takeaways

Virtune launched the Stablecoin Index ETP, the first of its kind in Europe, on multiple exchanges including Nasdaq Stockholm, Nasdaq Helsinki, and Deutsche Börse Xetra under ticker symbols STABLE and STABLEE.
The ETP provides investors with a diversified investment in the stablecoin ecosystem, reducing the risks associated with concentrating on few assets.
The product is backed 100% by crypto assets stored securely with Coinbase and has a 1.95% annual management fee, rebalancing quarterly.
Stablecoins are rapidly gaining traction, with European banks beginning to explore the development of their own compliant stablecoins.

Virtune launches first Stablecoin Index ETP in Europe

Main Content

On November 5, Swedish-regulated asset manager Virtune announced the launch of its Stablecoin Index ETP on major European exchanges, including Nasdaq Stockholm, Nasdaq Helsinki, and Deutsche Börse Xetra. The new product is traded under the Bloomberg ticker STABLE and offers investors exposure to a diverse range of blockchains and crypto assets that are integral to the use and adoption of stablecoins.

Marketed as the “first of its kind” in Europe, the ETP provides access to investors through various brokers and banks, such as Avanza, Nordnet, SAVR, Scalable Capital, Smartbroker, and Finanzen Zero. By focusing exclusively on the stablecoin ecosystem, the ETP allows investors to experience a broader array of assets, thereby decreasing the risk associated with investing in a limited selection of coins.

Helena Wedin, Head of ETF and ETP Services at European Markets Nasdaq, emphasized that this launch reflects Nasdaq's dedication to innovation in a transparent and regulated marketplace. “The introduction of the Virtune Stablecoin Index signifies an important milestone for both investors and the larger digital asset ecosystem," Wedin stated.

The Virtune Stablecoin Index ETP caters to both retail and institutional investors, offering a way to engage with the stablecoin market through an exchange-traded product. Over the past year, stablecoins have witnessed considerable adoption by financial institutions eager to provide clients with 24/7 transaction capabilities and quicker, more affordable cross-border transfer options.

In Europe, the stablecoin sector's growth has encouraged more banks to consider the launch of their own stablecoins. In September, nine banks—including UniCredit, Banca Sella, DekaBank, and ING—announced collaborations to create a MiCA-compliant euro-backed stablecoin.

Currently, euro-backed stablecoins represent a small portion of the overall $306 billion stablecoin market. Data from CoinGecko indicates that the euro stablecoin market cap stands at $606.6 million, with tokens like Circle’s EURC, Stasis Euro, and EUR CoinVertible leading the forefront.

What is Included in the Virtune Stablecoin Index ETP?

The Virtune Stablecoin Index ETP aims to capture value from the rapidly expanding global stablecoin market. Although the ETP itself does not hold stablecoins, it is designed to benefit from this underlying growth, showcasing the increasing role of blockchain technology in areas like payments, banking, and digital commerce.

According to Virtune's official release, the product is fully backed by crypto assets securely stored in cold storage with Coinbase and will undergo quarterly rebalancing. The ETP comes with a 1.95% annual management fee and allows trading in SEK and EUR.

As of November 4, the index allocation is diverse, with 42.9% of its funds allocated to Ethereum, 23.5% to XRP, 18.43% to Solana, 6.06% to Chainlink, 5.75% to Stellar Lumen, and approximately 3.36% in the Aave blockchain.

With these advancements, Virtune's Stablecoin Index ETP stands as a pivotal development for investors looking to dive into the growing stablecoin market.