- Deutsche Digital Assets and Safello confirmed the launch of their Bittensor Staked TAO ETP on November 19.
- The total return ETP provides retail and institutional investors with exposure to TAO as it tracks the KSSTAO Index.
Stockholm-based Safello recently announced the upcoming launch of its Bittensor Staked TAO Exchange Traded Product (ETP). The company’s new investment instrument will be issued in collaboration with the Frankfurt-headquartered Deutsche Digital Assets (DDA).
Safello Bittensor Staked TAO ETP Launch
According to a press release on Wednesday, Safello will roll out the Bittensor (TAO)-based ETP on November 19. Investors can trade it on the SIX Swiss Exchange under the ticker “STAO” and with a management fee of 1.49%.
Safello revealed that the offering operates under a cooperation agreement with DDA. It is 100% physically backed by TAO kept in cold storage at a regulated crypto custodian.
Features of the New TAO ETP
The product offers investors price exposure to Bittensor’s native token, TAO. The investment stands out for its TAO staking rewards, which the issuer automatically reinvests into the ETP and is accumulated in the product’s Net Asset Value (NAV) to compound holders’ returns. Safello designed the mechanism to gradually increase each holder’s TAO entitlement per ETP share over time, reflecting a full yield generated by the staking process.
The Bittensor Staked TAO ETP tracks the Kaiko Safello Staked Bittensor (KSSTAO) Index. The issuer structured the total return ETP for both retail and institutional investors.
Safello explained that it will get a revenue share depending on the product’s assets under management (AUM). However, the company has yet to determine the direct financial impact of the investment instrument.
An Important Milestone for Safello
Emelie Moritz, CEO of Safello, considered the ETP’s launch an essential milestone for their company. She also highlighted that the instrument will increase investors’ access to Bittensor.
ETPs enable consumers’ exposure to the underlying digital asset without the complexity of setting up a crypto wallet or worrying about the custody of their tokens. Additionally, it lets them trade the crypto ETP with the same convenience afforded by traditional online stock trading platforms.
“This is an important milestone for our new business area, and we are happy to soon be listing the first-ever TAO ETP on SIX Swiss Exchange,” said Moritz. The Safello TAO ETP will, as the first product from Safello, increase accessibility to Bittensor – one of the most exciting networks at the intersection of blockchain and AI.”
Maximilian Lautenschläger, CEO and founder of DDA, shared the same sentiment as his counterpart from Safello. He highlighted their commitment to regulatory compliance that does not compromise user experience.
“We are excited to announce the launch of the Safello Bittensor Staked TAO ETP through our collaboration with Safello,” Lautenschläger stated. “By leveraging DDA’s white-label ETP platform, we enable our partner to bring their innovative crypto investment strategies to market, while ensuring compliance with regulatory standards, seamless exchange listings, and efficient index tracking.”
