blockworks.co
Registered financial institution Virtune said Tuesday that it has launched a multi-asset crypto exchange traded product (ETP) on the Nasdaq Stockholm stock exchange in collaboration with crypto index provider Vinter.
The ETP tracks the Virtune Vinter Crypto Top 10 Index (VTOP10), which contains the ten largest crypto tokens by market cap. That includes bitcoin (BTC) and ether (ETH), each of which are weighted at the maximum of 40% as of May 2023. Polkadot (DOT), litecoin (LTC), and chainlink (LINK) round out the top five with weights of 5%, 5% and 3%, respectively, according to the index’s methodology.
Virtune is the issuer of the ETP and relies on Vinter to maintain the index. Vinter rebalances the index every month to make sure that the ETP accurately reflects the top-performing crypto tokens in circulation, the methodology states.
The leaders of Virtune and Vinter touted the product as a regulated, efficient and secure means for investors to expose themselves to crypto.
Christopher Kock, co-founder and CEO of Virtune, said he was thrilled to collaborate with Vinter, which is fresh off a $3.4 million funding round in January to expand its index offerings.
“The ETP will provide an attractive investment opportunity for investors seeking exposure to the crypto market, notably as an entry product for private investors as well as for high net-worth clients and institutional investors in the Nordics,” Kock said in a statement.
Retail and institutional investors can buy the VTOP10 ETP, and it will be traded like any security on the stock exchange, according to the press release. Additionally, the ETP is physically backed, meaning that the value of the product is secured by the actual crypto assets in the basket.
Jacob Lindberg, CEO and co-founder of Vinter, told Blockworks he was impressed by Virtune’s team, which was why he chose to collaborate on the ETP. Another factor, according to Lindberg, is that both companies have Swedish roots.
Lindberg added that Virtune, as the issuer of the ETP, must abide by EU Benchmarks Regulation and pick a registered Benchmark administrator, an entity that legally oversees the benchmarks of the index.
Vinter is a licensed benchmark administrator, according to the European Securities and Markets Authority.