Key Takeaways:
- Bitwise launched the first European ETP tracking Lighter’s native LIT token, which is known as BLIT.
- Completely protected by LIT, with a 0.85% annual fee, listed on Deutsche Börse Xetra.
- Providing investors with crypto exposure without direct wallet management or staking, eventually BLIT can earn staking rewards as well.
Bitwise has unveiled a new trading product for its crypto portfolio in Europe, joining an exchange-traded product that reflects its efforts to familiarise traders to the decentralised derivatives market with the platform Lighter. The launch gives traditional brokerage users a regulated way to gain exposure to LIT without directly holding the token.
Bitwise Brings LIT to European Investors
On September 23, the Bitwise Lighter Staking ETP (BLIT) joined Deutsche Börse Xetra. It follows the Kaiko Lighter Reference Rate Index and aims to give exposure to LIT, Lighter’s native coin.
Issued by Bitwise Europe GmbH, Germany and with an ATHR of 0.85%.
BLIT has proper support assigned to it in terms of LIT tokens that are stacked in cold storage. Investors can buy it via a standard investment account, without having to register a crypto wallet, control private keys or game tokens onchain.
The design also provides European investors with an exchange-traded gateway into the fledgling crypto trading marketplace.
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Staking Rewards Are Not Live Yet
Although it sounds like its name implies, BLIT is not providing staking income currently. Staking will commence when the ETP achieves the necessary assets under management to make the process efficient, Bitwise stated. In the meantime, investors get introduced to the movement of LIT’s price but not any wager-related returns.
Rewards will be credited daily after staking has commenced and will be shown in the crypto exposure of the ETP units.
Lighter Pushes Onchain Trading Beyond Crypto
Lighter is working on a trading platform built on blockchain that would provide exposure to crypto derivatives as well as traditional assets.
The platform has added perpetual futures contracts that connect to key U.S. corporations such as Apple, Amazon and Tesla, and that enable such markets to be traded on blockchain instead of traditional broker networks.
Lighter also offers a fee-less retail trading experience. The platform derives from direct trading fees from users only via professional market makers, transactions with liquidators and income from the treasury.
It is native token of the LIT network with the aim of aligning participants within the platform and supporting its economics.
Bitwise Expands Its Staking ETP Strategy
The Lighter launch comes after Bitwise’s adoption of blockchain-based trading platforms with its Hyperliquid Staking ETP (ETP) launched in Europe in April.
The two products offer European investors access to tokens that are tied to decentralized trading platforms, but without direct exposure to the cryptocurrency trading infrastructure.
For Lighter, the BLIT launch also puts LIT in a traditional investment vehicle accessible through broker accounts.
The underlying crypto market comes with its own set of risks, such as dramatically fluctuating market prices, limited liquidity, volatility in custody, shifts in regulations and network-related risks. Bitwise also warns that the ETP may not precisely track LIT and that investors could lose some or all of their invested capital.
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