Popular altcoin projects Uniswap (UNI) and Chainlink (LINK) are on the rise after Coinshares’ ETP announcement, with the expectation that they will be able to receive institutional investment.
Altcoin projects find new buyers following the news
CoinShares has announced the launch of two new physically-backed ETP products for UNI and LINK. ETPs will be listed on the Xetra exchange in Germany. In response to the news, UNI and LINK price rose slightly from their daily lows. Both altcoin projects were trading at the bottom of January 2021, accompanied by the overall market.
Following the news, Ethereum whales seem to be stocking up on UNI and LINK. UNI was one of the top 10 tokens purchased by whales in the last 24 hours, according to WhaleStats data.
UNI and LINK await more institutional attention in CoinShares’ upcoming IPO
The new ETPs will begin trading today, according to a press release from Coinshares. Both will receive a 1.50 percent annual management fee and will be determined in US dollars. UNI and LINK are likely to see new buyers as investors can now invest in the two tokens without owning any cryptocurrency. This feature of ETPs makes them particularly attractive to large institutional firms that do not want to directly trade cryptocurrencies.
CoinShares is launching its eighth new product with ETPs this year. In April, CoinShares announced the introduction of an ETP tracking the FTX token in collaboration with the cryptocurrency exchange. Additionally, the two have previously developed an ETP that gives investors access to Solana staking rewards. CoinShares also offers ETPs that track Bitcoin, Ethereum, and various other major cryptocurrencies.
Institutional demand is a major pricing factor
Historically, more institutional trading in crypto has always resulted in significant price increases. Bitcoin’s reaching ATH levels in November coincided with the launch of the first Bitcoin ETF in the US. However, this can also work the other way around: news of major trading firms leaving the market results in dramatic price drops. The drop in interest in Bitcoin this year is one of the main reasons for the token’s poor performance.
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