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Valour Launches Exchange Traded Product: A New Frontier for Digital Asset Support

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According to reports, Valour has launched an exchange traded product (ETP) for physical support of digital assets within the EU, including a white label solution for asset managers

Valour Launches Exchange Traded Product: A New Frontier for Digital Asset Support

According to reports, Valour has launched an exchange traded product (ETP) for physical support of digital assets within the EU, including a white label solution for asset managers and home offices. In 2023, total asset management increased by $70 million, reaching a historic high of nearly $148 million – a growth rate of nearly 90% year to date.

Valor launches physical supported exchange ETP

With the rapid growth of digital assets, there has been a surge in demand for safe and secure platforms to support and invest in these digital currencies. Recently, Valour, a Swiss-based company, has launched an exchange traded product (ETP) with physical support for digital assets, catering to the needs of asset managers and home offices in the EU. In this article, we delve into the details of Valour’s new ETP and the growth of digital assets in the market.

Understanding Valour’s Exchange Traded Product

Valour’s ETP is designed to provide easy and safe access to digital assets for investors. The product is structured as an open-ended ETF that tracks the top-performing digital assets in the market. The ETP has a unique feature – it is physically backed by the underlying assets which means that investors can redeem the ETP for the digital assets themselves. This innovative approach adds an additional layer of security and transparency to the investment process, assuring investors that their digital assets are backed by actual hard assets.
Apart from the ETP itself, Valour has also launched a white label solution aimed at asset managers and home offices. Under this solution, a white label issuer can offer their investors the same ETP product. This solution enables white label issuers or fund managers to brand, market and sell the ETP product under their own brand, benefiting from Valour’s infrastructure, custody solutions and regulatory compliance.

The Growth of Digital Assets in the Market

The impressive growth of digital assets has been reflected in the asset management industry. According to reports, in 2023, total asset management increased by $70 million, reaching a historic high of nearly $148 million, with a growth rate of nearly 90% year-to-date. With digital assets, investors have access to new investment opportunities and the potential for outsized returns. This is particularly true for the cryptocurrency market, which has seen an influx of retail investors seeking high returns from digital assets like Bitcoin and Ethereum.

The Advantages of a Physical ETP

As mentioned earlier, Valour’s ETP is distinct in the sense that it is physically backed by the underlying digital asset. This approach has a number of advantages compared to other investment vehicles:
– Transparency and security: Investors have the advantage of knowing that the ETP is backed by the actual digital assets instead of cash, ensuring greater transparency and accountability.
– Reduced counterparty risk: With a physically-backed ETP, investors do not have to rely on the issuer to manage the assets, reducing counterparty risk, and mitigating losses in the event of insolvency.
– Convenience: Investors can access the top-performing digital assets through a single investment vehicle, simplifying the investment process for those who want exposure to this market.

Conclusion

The launch of Valour’s ETP is a step forward in the quest for safe and secure digital asset products. The company’s innovative approach to asset management is likely to attract more investors over time. The ETP’s physical backing and white label solution are notable examples of how financial institutions are innovating and adapting to the changes in the market to provide better services to investors. Overall, while digital assets are a relatively new investment class, the growth rates they are showing indicate that investors are embracing their unique features and investment opportunities – ones that fixed-income and equity cannot offer.

FAQs

1. How does Valour’s ETP work?
Valour’s ETP is a physically backed ETF that tracks the top-performing digital assets in the market. Investors can redeem the ETP for the digital assets themselves.
2. What is a white label solution?
A white label solution is where an issuer can offer an existing product under their own brand, benefiting from the existing product’s infrastructure, custody solutions and regulatory compliance.
3. What is the advantage of a physically-backed ETP?
Physically-backed ETPs are backed by the actual digital assets, making them more transparent and secure for investors while reducing counterparty risk. It also simplifies the investment process for those who want exposure to this market.

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