Valour, a Swiss-based issuer of digital asset exchange-traded products (ETPs), has launched the world’s first ETP that tracks the performance of Internet Computer, a new blockchain-based platform that aims to reinvent the internet. The Valour Internet Computer Physical Staking ETP (1VIC GY) has been listed on Deutsche Börse with an expense ratio of 1.90%.

What is Internet Computer and why is it important?

Internet Computer is a project developed by the DFINITY Foundation, a non-profit organization based in Zurich, Switzerland. Internet Computer is a novel blockchain-based platform that seeks to decentralize internet infrastructure, making it possible for smart contracts to run on its network without relying on traditional servers. Internet Computer claims to be the world’s first blockchain that runs at web speed and can scale to unlimited capacity.

Internet Computer is designed to enable a new generation of applications, services, and systems that run entirely on the public internet, without intermediaries or gatekeepers. Internet Computer aims to challenge the dominance of big tech companies, such as Amazon, Google, and Facebook, that control the majority of the internet services and data. Internet Computer also aims to foster innovation and creativity, by allowing developers and entrepreneurs to build and deploy anything they can imagine on the internet.

Internet Computer is powered by a native cryptocurrency, called ICP, which is used to reward network participants, pay for network operations, and govern the platform. ICP is also used to stake in the network, which means locking up a certain amount of tokens to support the security and performance of the network. Staking ICP also entitles the holders to receive rewards in the form of newly minted ICP tokens.

How does the Valour Internet Computer ETP work?

The Valour Internet Computer ETP is an exchange-traded product that tracks the performance of Internet Computer, by holding and staking ICP tokens. The ETP is fully backed by the underlying asset, which means that for every unit of the ETP, there is a corresponding amount of ICP tokens held in secure custody. The ETP also distributes the staking rewards to the investors, by increasing the number of ICP tokens per unit of the ETP over time.

The Valour Internet Computer ETP is designed to provide investors with a simple and cost-effective way to gain exposure to Internet Computer, without the need to set up a digital wallet, manage private keys, or deal with the technical complexities of staking. The ETP is also regulated and transparent, as it is listed and traded on a reputable stock exchange, and follows the same rules and standards as other securities.

The Valour Internet Computer ETP is the first and only ETP in the world that offers exposure to Internet Computer, and the first ETP that incorporates staking rewards into its structure. The ETP is also the latest addition to Valour’s growing portfolio of digital asset ETPs, which include products tracking Bitcoin, Ethereum, Polkadot, Cardano, and Solana.

What are the benefits and risks of investing in the Valour Internet Computer ETP?

The Valour Internet Computer ETP offers several benefits to investors who are interested in Internet Computer, such as:

Access: The ETP allows investors to access Internet Computer, a new and innovative blockchain platform that has the potential to revolutionize the internet, through a familiar and convenient investment vehicle.
Performance: The ETP tracks the performance of Internet Computer, by holding and staking ICP tokens, and distributes the staking rewards to the investors, enhancing the returns of the ETP.
Simplicity: The ETP simplifies the process of investing in Internet Computer, by eliminating the need to deal with the technical and operational challenges of holding and staking ICP tokens, such as setting up a digital wallet, managing private keys, or interacting with smart contracts.
Cost-efficiency: The ETP reduces the costs of investing in Internet Computer, by offering low fees, high liquidity, and tax efficiency, compared to buying and staking ICP tokens directly.
Regulation and transparency: The ETP is regulated and transparent, as it is listed and traded on a reputable stock exchange, and follows the same rules and standards as other securities. The ETP also publishes its holdings and NAV on a daily basis, and undergoes regular audits and reviews.

However, the Valour Internet Computer ETP also involves some risks that investors should be aware of, such as:

Market risk: The ETP is subject to the market risk of Internet Computer, which is a volatile and speculative asset that can experience significant price fluctuations due to various factors, such as supply and demand, competition, regulation, hacking, and technical issues.
Staking risk: The ETP is subject to the staking risk of Internet Computer, which means that the ICP tokens held by the ETP are locked up in the network and cannot be sold or redeemed until the end of the staking period, which can last up to eight years. This reduces the liquidity and flexibility of the ETP, and exposes it to the risk of losing the staked tokens in case of a network failure or a slashing event, where the network penalizes the stakers for malicious or faulty behavior.
Counterparty risk: The ETP is subject to the counterparty risk of the custodian, the market maker, and the issuer, which means that the investors may lose their investment in case of a default, insolvency, or fraud by any of these parties.

Valour launches the world’s first Internet Computer crypto ETP. The ETP tracks the performance of Internet Computer, a new blockchain-based platform that aims to decentralize internet infrastructure, by holding and staking ICP tokens. The ETP offers investors a simple and cost-effective way to gain exposure to Internet Computer, without the need to deal with the technical and operational challenges of holding and staking ICP tokens.