Sweden has recently made a significant move in the financial market by landing its first physically backed multi-asset. This marks a major milestone for the nation and demonstrates its commitment to developing and diversifying its financial landscape. Let’s take a closer look at this exciting development and what it means for Sweden’s economy.
Firstly, what is a physically backed multi-asset? It is a financial product that invests in a range of assets such as commodities, bonds, and equities, with the underlying assets held physically in a vault. This is different from other types of investments, such as exchange-traded funds (ETFs), which may hold the underlying assets as futures or derivatives. Physically backed multi-assets provide investors with more transparency and less counterparty risk, as the assets are held in a secure location and not dependent on any third-party involvement.
The launch of Sweden’s physically backed multi-asset is significant for several reasons. Firstly, it offers Swedish investors more choice in terms of investment products. With the current low-interest rate environment, investors require more options to diversify their portfolio and achieve long-term returns. The multi-asset product provides a one-stop-shop for investors, allowing them to gain exposure to a range of asset classes with a single investment.
Secondly, launching a physically backed multi-asset puts Sweden on the map as a significant player in the financial market. The product will be listed on the Nordic Growth Market (NGM), which is the leading exchange for growth tech companies. By offering this product, Sweden is demonstrating its commitment to becoming a hub for innovative financial solutions and attracting international investors to its market.
Thirdly, by offering a physically backed product, Sweden is also providing investors with greater reassurance when it comes to the safety and security of their investments. The physical storage of assets reduces the risk of fraud or malpractice, providing investors with confidence that their investment is secure and transparent.
The new product has been launched by Xact Kapitalförvaltning AB, a subsidiary of Swedish bank Handelsbanken. It is the first physically backed multi-asset in Sweden to be offered by a local provider. The investment product will track the Bloomberg Commodity Index, which is designed to measure the performance of a diversified basket of commodities. The multi-asset product will also include exposure to equities and bonds.
Xact Kapitalförvaltning AB’s CEO, Åsa Mindus, said in a press release, “This is an exciting product for us to launch, and we believe that it will set a new standard for physical multi-assets in Sweden. Our customers have been asking for more innovative products, and we are thrilled that we can now offer them this alternative multi-asset solution.”
In conclusion, Sweden’s landing of its first physically backed multi-asset is a significant milestone for the nation’s financial market. The product offers investors more choice in terms of investment products, positions Sweden as a hub for innovative financial solutions, and provides greater reassurance for investors in terms of their investment’s safety and security. With the launch of this product, Sweden is demonstrating its commitment to developing and diversifying its financial landscape to meet the changing needs of investors in an uncertain global economy. As such, it is a welcome development that promises to bring new opportunities to the Swedish financial market for years to come.
Swedish digital asset manager, Virtune, has announced the launch of the first physically backed multi-asset crypto ETP to be listed on Nasdaq Stockholm. Developed in collaboration with Vinter, the leading crypo index provider in Europe, the ETP tracks the Virtune Vinter Crypto Top 10 Index (VTOP10).
VTOP10 is built on a rule-based approach, allowing the index to be rebalanced on a monthly basis to provide dynamic exposure as new coins enter the index. The index has a maximum cap of 40% per constituent, improving diversification and providing exposure to 85% of the crypto market by investing in the top 10 assets. This ETP is a proven and tested vehicle to gain passive exposure to foundational blockchain protocols, as well as being a convenient and safe entry point for investors.
Being physically backed, all crypto assets in the ETP are fully collateralized, ensuring its value is secure. This innovative launch, a first since 2015, marks an important milestone in the Nordic crypto landscape. The ETP will offer attractive investment opportunities for investors seeking exposure to the crypto market, particularly as an entry product for private investors, high net-worth clients, and institutional investors in the Nordics.
The launch of the VTOP10 ETP is expected to provide investors with an efficient and cost-effective way to gain exposure to the most valuable crypto assets. The innovative index-based investment strategy offered by VTOP10 ETP is completely transparent. This feature makes it easy for any investor to understand and invest in the crypto market.
Commenting on the partnership, Jacob Lindberg, CEO of Vinter, stated, “Introducing the launch of the all-Swedish newest product in collaboration with Virtune has been long awaited in the Swedish crypto community. VTOP10 will be the first multi-asset crypto ETP to list on Nasdaq Stockholm. VTOP10 provides investors with an efficient and cost-effective way to gain exposure to the most valuable crypto assets.”
Christopher Kock, Co-founder and CEO of Virtune, added, “We are thrilled to collaborate with Vinter to launch this Swedish heritage multi-asset product, which will provide investors with access to the most valuable cryptocurrencies in a regulated and secure manner.”
Virtune, with its headquarters in Stockholm, is a fully regulated Swedish digital asset manager and issuer of crypto exchange-traded products on regulated European exchanges. The company empowers investors on a global level to access innovative and sophisticated investment products that are aligned with the evolving landscape of the global crypto market.
In conclusion, the launch of the VTOP10 ETP provides an attractive investment opportunity for investors seeking exposure to the crypto market in a regulated and secure manner. The innovative partnership between Vinter and Virtune marks an important milestone in the Nordic crypto landscape and is expected to attract both retail and institutional investors.