Pando Asset Debuts ‘Smart Contracts’ Multi-Crypto ETP | Exchange Traded Funds Strategy

recently minted Pando Asset has debuted its first ETP in Switzerland providing direct backed exposure to a basket of cryptocurrencies underpinning major smart contract platforms.

Junfei Ren, Partner at Pando Asset

Junfei Ren, Partner at Pando Asset.

the Pando Asset Crypto 6 ETP (PNDS SW) has been included in SIX Swiss Exchange in US dollars.

Smart contracts are automated programs that are stored on a blockchain and are executed when predetermined conditions are met.

Its function is to execute agreements in such a way that all participants can be immediately certain of the result.

Additional benefits of smart contracts include anonymity, authenticity, and frictionless transactions, as well as time and cost savings as a result of the absence of intermediaries.

Methodology

The ETP is linked to the Vinter Pando Crypto Basket 6 Index which was developed by the European provider of digital asset indices winter in partnership with Pando.

The index references the performance of the six largest and most liquid smart contract crypto assets based on 90-day average market capitalizations.

Each crypto asset is weighted proportionally to the square root of its market capitalization, a weighting methodology that aims to offer a diversified portfolio where the two largest assets do not dominate the basket.

Currently, the index allocation is Bitcoin (39.6%), Ethereum (27.3%), Binance Coin (11.9%), Solana (8.0%), Cardano (7.3%) and Polkadot ( 5.9%).

The ETP is designed to offer institutional investors easy and diversified access to these leading smart contract crypto assets through a liquid and regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

It uses fully direct “physical” replication, with each ETP share guaranteed 100% by a corresponding investment in the underlying crypto assets that are stored using an institutional-grade “cold storage” custody solution provided by Coinbase.

Pando also employs additional security features such as multi-signature authorization, whitelisting addresses, and audit trails.

Junfei Ren, a partner at Pando Asset, said: “The company is on a mission to enable investors to participate in crypto assets without worrying about the risk of losing a private key or password, or facing loss from hackers or security issues. systematic”.

The ETP comes with an expense ratio of 2.00%.

PNDS is the second multi-crypto ETP to focus on smart contract platforms following the May 2022 launch of the VanEck Smart Contract Leaders ETN (VSMA GY) in Deutsche Borse Xetra. VSMA, which comes with a 1.50% expense ratio, weights its components by market value and caps the weight of any individual asset at 30%. Notably, the ETP does not consider Bitcoin to be a qualified smart contract platform (likely because Bitcoin was not originally designed with smart contract functionality but rather as a decentralized currency).

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