On June 1st, 2021, DeFi Technologies (NEO: DEFI) (GR:RMJ.F) (OTC: DEFTF) subsidiary Valour launched the Polkadot ETP, or exchange traded product (VALOUR POLKADOT (DOT) SEK – CH1114178770). This product was launched on the Nordic Growth Market stock exchange, an exchange that caters primarily to the Scandinavian countries of Sweden, Denmark, Finland, and Norway.
What is Polkadot?
Valour’s Polkadot ETP allows investors to gain exposure to the DOT token, the native token of the Polkadot protocol, in a safe and secure way through a bank or broker. The Polkadot protocol is an innovative blockchain protocol that allows for the interoperability and scalability for multiple blockchains. Polkadot’s DOT token, an open source project supported by the WEB3 foundation, carries out essential functions for the protocol.
Among these key functions include network governance, network operation through the use of staking, and the creation of parachains– specialized blockchains interconnected with Polkadot. Polkadot is especially significant as it is among the top ten cryptocurrencies in terms of market capitalization, with a current cap of USD $19.7 billion.
Advantages Of An ETP
An ETP is especially beneficial for investors in DeFi technologies because it enables exposure to the Polkadot cryptocurrency while still maintaining a certain degree of regularity, risk reduction, and centralization as a cleared product on a stock exchange. Additionally, ETPs allow investors to sidestep technical complications in buying and holding a cryptocurrency.
Essentially, an ETP for Polkadot would allow for individual and institutional investments in the disruptive digital asset space through a very streamlined and traditional method like buying shares, mitigating the risk and hassle from normal methods of investing in digital assets. For every Polkadot ETP that is bought and sold on exchanges, Valour itself will purchase or sell an equivalent amount in the underlying asset, ensuring that the ETP will always be backed. Valour CEO Diana Biggs speaks on the launch of the Valour ETP:
“This is a particularly exciting time for the Polkadot protocol with the upcoming launch of its parachain functionality, providing increased scalability and finalizing its core build. Our launch of Valour DOT SEK is a direct response to increased demand from both retail and institutional investors for access to further innovative blockchain protocols via our ETPs”
In essence, the release of the Polkadot ETP fully hedged to Polkadot will pave the way for more mainstream adoption of the digital asset and decentralized finance as a whole.
In tandem with their release of the Valour ETP, DeFi Technologies has also announced a partnership with Native Ads Inc. for a digital media marketing campaign. This campaign will run for a year, costing around C$312,500, and will include web development, campaign reporting and optimization, media buying and distribution, as well as content creation.
Valour Structured Products Inc. is a subsidiary of DeFi Technologies, specialized in issuing exchange-listed financial products that allow retail and institutional investors to access disruptive investment innovations like cryptocurrencies and digital assets through traditional, safe, and secure methods.
About DeFi Technologies
DeFi Technologies is a Canadian-based company that seeks to drive investments into decentralized finance and incubate new products within the digital asset space. This is accomplished through DeFi’s Three Pillars of revenue generation, which include DeFi Asset Management, DeFi Ventures, and DeFi governance.
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