Valour Launches Pi ETP on Spotlight Stock Market: What Does it Mean for Pi Network?

Valour, a subsidiary of DeFi Technologies, has introduced the Valour Pi Swedish Krona (SEK) exchange-traded product (ETP) on Sweden's Spotlight Stock Market, offering investors regulated exposure to Pi Network's PI cryptocurrency without the need for direct crypto handling. 

This development allows traditional investors in the Nordic region and beyond to trade PI through standard brokerage accounts, marking a step in integrating Pi Network into conventional financial systems.

Valour Launches Eight New SEK-Dominated ETPs

Valour Funds announced the launch of eight new SEK-denominated ETPs on the Spotlight Stock Market, a multilateral trading facility (MTF) regulated under the EU's Markets in Financial Instruments Directive (MiFID II) by Sweden's Financial Supervisory Authority (Finansinspektionen). 

These products include Valour Shiba Inu, Valour Pi, Valour Ondo, Valour Cronos, Valour Mantle, Valour VeChain, Valour Ethena, and Valour Celestia, bringing Valour's total offerings to over 85 across Europe. The announcement on X highlighted the ETPs' design for simplicity, enabling Nordic investors to access digital assets through familiar brokerage platforms, such as Avanza or Nordnet.

Valour executives noted in the Press Release that the listings respond to market demand for diversified cryptocurrency exposure in a regulated format. 

Each ETP is physically backed 1:1 by the underlying tokens held in custody, with Valour acquiring assets from liquid exchanges to match investor demand. They carry a management fee of approximately 1.9 percent and are open-ended, with no expiry date. Pricing references average token/USD rates from major exchanges, and the products are denominated in SEK to cater to local markets.

Overview of the Eight New ETPs

The new ETPs encompass a range of digital assets, including memecoins and blockchain infrastructure tokens. Below is a breakdown of each:

Valour Shiba Inu (SHIB) SEK: Tracks SHIB, a memecoin created as a Dogecoin alternative in 2020. SHIB operates on the Ethereum blockchain and has a large community, with DeFi apps like ShibaSwap. The ETP provides exposure to SHIB's price movements without direct token handling.

Valour Pi (PI) SEK: Follows PI, the native token of Pi Network, a mobile-first cryptocurrency project launched in 2019. Pi Network enables smartphone-based mining and has reported over 50 million users in more than 240 countries. 

Valour Ondo (ONDO) SEK: Linked to ONDO, the token of Ondo Finance, which tokenizes real-world assets like U.S. Treasuries for use in DeFi. Launched in 2021, Ondo bridges traditional finance and blockchain, offering yield-bearing products. The ETP allows investors to track ONDO's performance in a regulated format.

Valour Cronos (CRO) SEK: Tracks CRO, the utility token of the Cronos blockchain, developed by Crypto.com in 2018. Cronos is compatible with the Ethereum Virtual Machine (EVM) and supports DeFi, NFTs, and gaming applications. CRO is used for transaction fees and staking within the ecosystem.

Valour Mantle (MNT) SEK: Based on MNT, the governance and utility token of Mantle Network, a layer-2 scaling solution for Ethereum, launched in 2023. Mantle uses optimistic rollups to reduce transaction costs and improve speed, with MNT facilitating staking and protocol decisions.

Valour VeChain (VET) SEK: Follows VET, the token of VeChainThor blockchain, established in 2015 for enterprise supply chain management. VeChain utilizes a dual-token system, with VET serving as a value transfer token and VTHO serving as a gas fee token, supporting applications that focus on traceability and data integrity.

Valour Ethena (ENA) SEK: Tracks ENA, the governance token of Ethena Labs, which operates a synthetic dollar protocol launched in 2024. Ethena's USDe stablecoin is backed by hedged positions in Ethereum derivatives, with ENA used for voting on protocol changes.

Valour Celestia (TIA) SEK: Linked to TIA, the token of Celestia, a modular blockchain network focused on data availability since 2023. Celestia separates consensus and execution layers, enabling scalable rollups, with TIA used for staking and paying for data blobs.

Understanding the Valour Pi ETP

The Valour Pi SEK ETP tracks the price of PI, the native token of Pi Network, and is denominated in Swedish Krona. Listed on the Spotlight Stock Market, it provides a 1:1 physically backed structure where Valour holds PI tokens in custody. Investors purchase shares of the ETP, much like stocks, thereby avoiding the need for cryptocurrency wallets.

The ETP operates by having Valour acquire PI tokens from liquid exchanges, store them securely, and issue corresponding shares. Investor demand prompts Valour to buy or sell PI, which can affect market liquidity. It carries a management fee of about 1.9 percent and uses an average PI/USD price from major exchanges as its reference. The ticker is VALOUR PI SEK, with WKN code A4APA7, and it has no expiry date as an open-ended product.

This marks the first regulated PI product in Europe, allowing exposure through traditional accounts. 

What does it mean for Pi Network? 

The Valour Pi ETP provides institutional validation for Pi Network, as Valour, part of Nasdaq-listed DeFi Technologies, complies with European regulatory standards. This could lead to further partnerships and integrations, aligning with Pi's focus on real-world applications in sectors like hospitality and education.

Pioneers emphasize the ETP's role in elevating Pi from a mobile mining project to a regulated asset class. 

Additionally, by enabling PI trading via traditional brokers, the ETP reduces entry barriers for non-crypto investors, particularly in Europe. This supports Pi's goal of mass adoption, potentially expanding beyond its current 50 million users.

While there is no guarantee that the news will have any impact on the price of $PI, the general sentiment suggests that the ETP could influence the asset’s price by requiring Valour to purchase tokens based on demand, potentially stabilizing its value. 

The ETP aligns with Pi's recent upgrades, including the upcoming v23 for dApps and integrations, which foster a borderless economy. 

In summary, the Valour Pi ETP enables regulated trading of PI on the Spotlight Stock Market, tracks PI price with 1:1 backing, and supports Pi Network's utility focus through increased liquidity and accessibility for over 50 million users.

Sources:

• Valour Press Release: https://valour.com/press-releases/valour-launches-eight-new-etps-on-spotlight-stock-market/ 
• PI Network’s upcoming v23 update: https://minepi.com/blog/pi-linux-node/ 
• Valour Announcement on X:  https://x.com/ValourFunds/status/1960673415062237513