Laser Digital has recently unveiled the Ethereum Adoption Fund, specifically designed to cater to the needs of institutional investors. This strategic initiative by the company aims to facilitate the widespread adoption of Ethereum within the institutional investment landscape.
Laser Digital Seeks to Integrate Ethereum Into Advanced Investment Strategies
The announcement of this fund was made by Laser Digital on Thursday, signifying their commitment to fostering the integration of Ethereum into the investment strategies of institutional players. The entity above represents a digital assets-focused affiliate of Nomura, a prominent investment bank headquartered in Japan.
The newly introduced product focuses on allocating funds towards long-only spot ether positions while simultaneously implementing a yield enhancement strategy by staking the ETH assets held by the fund.
According to Fiona King, the head of distribution at Laser Digital Asset Management, the process ensures the fund’s daily liquidity is maintained while also providing a staking facility that yields approximately 5.5%.
Very Strong Demand Is Expected for the Company’s New Product
Various entities, including pension funds, family offices, and asset managers, drive the demand for the product above. Additionally, private banks offering discretionary funds are contemplating allocating a portion, ranging from 1% to 5%, towards the newly introduced ETH product, as King stated in an email correspondence with Blockworks.
In a formal statement, Sebastien Guglietta, the esteemed head of Laser Digital Asset Management, expressed his perspective on the pivotal role played by Ethereum in facilitating the ongoing transition towards a digital economy.
According to the individual, prolonged exposure to Ethereum can serve as a viable means to capitalize on the prevailing technological trend of this structural nature and the rapid growth of the Web3 economy and its subsequent network effect.
The Price of ETH Continues to Skyrocket Along With Its Demand for It
At 10:15 am ET, the price of Ethereum (ETH) was observed to be approximately $2,020, reflecting a notable increase of 7.5% within the preceding 24-hour period.
The launch follows Laser Digital’s introduction of a bitcoin product in September. The company intends to offer a series of “digital adoption investment solutions,” with this fund being the initial offering in that lineup.
Both the Bitcoin (BTC) and Ethereum (ETH) offerings have been duly registered with the Cayman Islands Regulatory Authority, demonstrating compliance with the regulatory framework established by the jurisdiction. Komainu, a prominent cryptocurrency firm, assumes the responsibility of safeguarding and managing the assets contained within every individual fund.
The United States Securities and Exchange Commission (SEC) is evaluating a range of exchange-traded funds (ETFs) that propose direct exposure to ether, the native cryptocurrency of the Ethereum blockchain network.
Last year, Nomura successfully introduced Laser Digital, a Switzerland-based company, into the market. The asset management unit, which consists of personnel in London, Zurich, and Dubai, was established in February.
In July, Laser Digital obtained a comprehensive cryptocurrency license from Dubai’s esteemed Virtual Asset Regulatory Authority. The company made a notable announcement regarding its intention to provide comprehensive over-the-counter trading services and a diverse range of cryptocurrency investment products tailored explicitly for institutional clients.