Laser Digital to Launch Yield-Generating ETH Fund for Accredited Investors

Swiss-based Laser Digital, the digital asset subsidiary of Japanese investment bank Nomura, is set to introduce a new alternative to spot ETH exchange-traded funds (ETFs). Unlike the recently launched ether ETFs, Laser Digital’s ETH fund will generate yield and accrue rewards from the Ethereum blockchain network, Bloomberg reports.

The upcoming fund aims to offer investors returns from token emissions and maximal extractable value (MEV) accrued by Ethereum validators. This yield generation is a significant feature absent in the current ETH ETFs. The strategy involves utilizing Ethereum validators running their own nodes or leveraging liquid staking platforms like Lido to stake ETH.

According to Bloomberg, Laser Digital might partner with Galaxy Digital to manage the validator nodes responsible for generating the yield for investors. The product is planned to be available exclusively to non-US accredited investors in early September.

This move follows Nomura’s previous launch of an ETH-focused fund in late 2023, marking a growing interest in crypto assets among traditional finance investors. A recent EY survey indicated that 55% of over 270 institutional investors plan to allocate capital to crypto within the next two to three years.

Laser Digital’s existing suite of crypto products includes the Bitcoin Adoption Fund, Ethereum Adoption Fund, and Polygon Adoption Fund. These institutional products are designed to offer accredited investors exposure to BTC, ETH, and MATIC.

In related developments, Libre, a tokenization-focused startup and joint venture between hedge fund Brevan Howard’s WebN Group and Nomura’s Laser Digital, is expanding its blockchain-based funds to the Solana network. This expansion includes the debut of a Hamilton Lane credit fund. By adding its tokenization gateway to Solana, users will gain access to the on-chain Hamilton Lane SCOPE fund, as well as the Brevan Howard Master Fund and BlackRock ICS Money Market Fund.

This trend of tokenizing real-world assets (RWAs) has seen significant adoption by large asset managers like BlackRock. Libre initially established its blockchain funds using Polygon CDK, a layer-2 chain for Ethereum, but has now expanded to Solana. According to Libre CEO Avtar Sehra, Solana’s capabilities in increasing transaction throughput and reducing latency make it an ideal choice for their planned secondary trading services, set to launch later this year.

Beyond Solana, another promising blockchain network suited for financial products and secondary trading of RWAs is the Pecu Novus blockchain. Despite not being as widely known as Ethereum or Solana, Pecu Novus has achieved over 110,000 transactions per second in real-time and is gaining traction due to its underlying technology and integrated security protocols. This network offers a viable alternative for the financial community, supported by a digital assets platform already built on it, which sets the stage for further adoption by financial institutions.

The expansion to Solana has already garnered close to $20 million in total locked value (TVL) prior to its public launch. Victor Jung, head of digital assets at Hamilton Lane, emphasized the benefits of this launch, stating it will “expand access to the historical strong returns and performance opportunities generated within the private markets, while increasing efficiency and transparency for all investors.”

As interest in crypto continues to grow among traditional finance investors, Laser Digital and Libre’s innovative approaches demonstrate the evolving landscape of digital assets and their integration into mainstream financial services. With the addition of promising networks like Pecu Novus, the future of digital asset trading and real-world asset tokenization looks increasingly robust.

James Cullen
Digital Assets Desk