Laser Digital, the digital asset arm of the prestigious Japanese investment bank Nomura, has launched an Ethereum Adoption Fund. The announcement made on Thursday marks a significant move targeting institutional investors seeking exposure to the second-largest cryptocurrency. This fund engages in long-only spot ether investments and adds a yield enhancement strategy by staking ETH.
Fiona King, the Head of Distribution at Laser Digital Asset Management, detailed the dual advantage of maintaining daily liquidity and offering a staking yield of about 5.5%. This compelling approach has garnered attention from pension funds, family offices, and asset managers. Moreover, private banks are contemplating allocating up to 5% in discretionary funds to this ETH product.
Strategic long-term exposure to Ethereum
Sebastien Guglietta, the lead of Laser Digital Asset Management, highlighted the strategic importance of Ethereum in the digital economy’s evolution. Hence, investors consider long-term exposure to Ethereum as a method to leverage the Web3 economy’s growth. The optimistic perspective comes as Ethereum’s price saw a significant uptick, reported at approximately $2,017, marking a 6.5% increase over the last day.
The product’s launch closely follows the introduction of a bitcoin fund by Laser Digital in September. Significantly, the ETH and BTC offerings are under the regulatory oversight of the Cayman Islands Authority, with Komainu as the custodian for the assets.
Expanding influence and strategic positioning
Laser Digital has not only innovated with its Ethereum fund but has also been expanding its geographic footprint. The firm, founded in September 2022 and based in Switzerland, has recently established a presence in Dubai and Japan. This move diversifies its operational landscape amid the unpredictable regulatory climates in the UK and the US.
Furthermore, Steven Ashley, co-founder and executive chair at Laser Digital, emphasized the fund’s appeal to investors interested in the foundational technologies of the Web3 ecosystem. Ethereum’s strategic position as a building block for this digital structure makes it a significant attraction for the firm’s institutional clientele.
The company’s asset management division is also set on capitalizing on Ethereum’s potential to enable transformative economic changes. The custody of the Ethereum fund’s assets falls to Komainu, a crypto custodian born out of a joint venture between Nomura, Ledger, and CoinShares.
Laser Digital’s initiative comes when the US Securities and Exchange Commission is considering ETFs with direct ether holdings, showing a broader institutional interest in cryptocurrency investment vehicles. With such funds, Europe’s market has also witnessed innovations like the spot bitcoin ETF from Jacobi Asset Management, illustrating a growing trend of traditional finance embracing digital assets.
The Ethereum Adoption Fund by Nomura Laser Digital represents a crucial step towards integrating digital currencies within the conventional investment portfolios of institutional players, signaling a robust bridge between the emerging digital asset class and established financial institutions.
