Fineqia AG, the European subsidiary of digital assets and investment firm Fineqia International, has introduced a groundbreaking exchange-traded note that leverages Cardano assets for yield bearing in decentralized finance. The Fineqia FTSE Cardano Enhanced Yield ETN, now live on the Vienna Stock Exchange, offers investors the opportunity to participate in the potential price appreciation of Cardano (ADA) while earning yield regardless of the asset’s price movements.
ETNs are debt instruments that collateralize an exchange-traded product’s underlying asset, including cryptocurrencies. The Cardano ETN, trading under the ticker YADA, enables investors to access yield by utilizing ADA across yield-bearing DeFi protocols. The global DeFi market currently boasts over $155 billion in total value locked across various protocols, with projections by research platform Statista estimating the ecosystem’s revenue to reach $542 billion by 2025.
In collaboration with FTSE Russell, a subsidiary of the London Stock Exchange, Fineqia’s launch of the Cardano ETN marks a significant milestone. The ETN’s index provider, FTSE Russell, will play a crucial role in the product’s performance and tracking. The recent approval of Fineqia AG’s base prospectus by the Liechtenstein Financial Market Authority paves the way for the issuance of crypto-backed exchange-traded notes across the European Union.
The introduction of YADA adds to the expanding crypto ETN market in the EU, with a substantial presence on the Vienna Stock Exchange. The market has seen a surge in crypto ETPs globally, with over 220 products currently managing more than $216 billion in assets. Noteworthy among these are U.S. spot Bitcoin ETFs, which have garnered over $121 billion in AUM since their debut in January 2024, amid positive market sentiment following Trump’s victory and assumption of office.
Spot Bitcoin ETFs have witnessed significant net inflows of over $4.2 billion year-to-date, reflecting growing optimism within the market. The availability of diverse crypto investment vehicles, including ETNs and ETPs, underscores the increasing acceptance and adoption of digital assets as mainstream investment options. Fineqia’s innovative Cardano ETN represents a strategic move towards offering investors exposure to both the potential growth of Cardano and the lucrative opportunities within the DeFi space.