Iconic Funds has appointed State Street as fund administrator for its planned bitcoin-backed exchange-traded note (ETN).
State Street will perform administrative services to support the issuance of the ETN by calculating the net asset value of the bitcoin portfolio consuming crypto market data from various crypto depositories.
State Street will work closely with Iconic’s other service providers, including Coinbase Custody and Fidelity, who have been selected to store bitcoin and manage its operational risk.
The ETN will be listed on the Frankfurt Stock Exchange, following the approval by the German Securities Regulator.
Launched in 2019, Iconic is the holding company of a series of subsidiaries that manage and issue crypto asset index investment products, offering passive and diversified exposure for investors.
This bitcoin-backed ETN will be Iconic’s first exchange trade investment product, which it says will allow investors to participate in the performance of bitcoin by using a familiar market.
Nadine Chakar, head of State Street’s Global Markets business, says: “The digital asset ecosystem is gaining significant momentum and is leading to a growing pipeline of cryptocurrency-related administration services. We’re delighted to be collaborating with Iconic Funds and to continue to evolve our important servicing needs as part of our broader strategy for the crypto and digital assets environment.”
Chris Tyrer, head of Fidelity Digital Assets in Europe, explains: “Institutional interest in bitcoin had been steadily increasing for several years, but the pandemic has served as a catalyst, drawing even more demand from this investor segment, due to the unprecedented levels of monetary and fiscal stimulus and the attractiveness of a fixed supply uncorrelated asset.”
“The maturation of the digital assets ecosystem has been integral to supporting the demand in the marketplace in response to this strong global macro narrative,” Tyrer adds.
