Cardano Staking ETF Debuts on Swiss Stock Exchange

The Swiss Stock Exchange introduces the Cardano Staking ETF, a collaboration between Liqwid Finance and Issuance.Swiss AG. CASL tracks Cardano's market performance and ADA staking returns, bridging traditional and decentralized finance (DeFI). The ETF is fully backed by physical ADA tokens in cold storage, ensuring security and offering a lower management fee of 1.5%.

The Swiss Stock Exchange, SIX, recently announced the listing of a new financial product, the Cardano Staking ETF (CASL).

This Exchange Traded Fund (ETF), created by Liqwid Finance in collaboration with Issuance.Swiss AG. It introduces a way for investors to engage with ADA, native to the Cardano blockchain, alongside earning potential staking rewards.

Swiss Stock Exchange Lists Cardano Staking ETF

The ETF is designed to track the market performance of the ADA token and the returns generated from staking the token. Staking involves participants actively engaging in transaction validation on a Proof-of-Stake blockchain, a process that earns them rewards on their holdings.

Florian Volery, the co-founder of Liqwid Finance, explained the dual benefit of the ETF. He emphasized its role in bridging the gap between traditional finance and decentralized finance (DeFi). According to Volery, CASL offers investors a blend of traditional financial product stability with the growth inherent in crypto.

“Until now, most of the financial instruments available to investors in the crypto universe gave them access to developments in the underlying assets (Bitcoin, Ethereum, ADA, etc.). We’re going one step further, by putting ADA’s outstanding assets to work and redistributing the interest to investors,” Volery said.

A standout feature of the CASL ETP is its 100% backing by physical ADA tokens, secured in cold storage, mitigating risks associated with digital asset custody. This physical backing aims to provide a solid foundation for the ETF, offering investors an additional layer of security.

Moreover, CASL boasts a lower management fee of 1.5%, positioning it as a cost-effective option. Its launch on the SIX Swiss Exchange platform further enhances its visibility and accessibility to investors.

The ETF’s introduction is notable for its use of Cardano. The blockchain’s record of zero outages in the past five years contrasts other Proof-of-Stake networks. It underlines the reliability of the CASL ETP infrastructure.

With an initial launch price of $25 and available in multiple currencies, CASL represents a new avenue for investors looking to explore the crypto market through a regulated, traditional financial instrument. This launch reflects the growing integration of cryptocurrency into mainstream finance, offering investors novel ways to diversify their portfolios.