Crypto investing, reinvented? Fineqia’s Cardano ETN offers a new approach

Fineqia International Inc (CSE:FNQ, OTC:FNQQF) is betting on a new kind of financial product to reshape the way investors engage with digital assets.

Fineqia, a digital asset and investment business listed on the Canadian Stock Exchange (CSE), recently launched its Fineqia FTSE Cardano Enhanced Yield exchange-traded note (ETN)—an industry-first that aims to combine the potential upside of cryptocurrencies with greater stability and consistent yield. Trading under the ticker YADA, the ETN is listed on the Vienna Stock Exchange.

YADA allows investors to gain exposure to the price appreciation of Cardano, a top 10 digital asset, while earning yield through decentralized finance (DeFi) protocols. Fineqia’s ETN is also benchmarked to the FTSE Russell index, allowing for greater transparency and security.

CEO Bundeep Singh Rangar described YADA as an “icebreaker” for the industry. “We didn’t want to be another copycat version of what’s out there. We wanted to leapfrog the industry, and I believe we’ve done that.”

Long-term yield

For investors wary of crypto’s notorious volatility, the ETN offers a middle ground. Unlike speculative trading, YADA allows holders of certain digital assets to earn rewards by participating in the blockchain validation process. Investors are able to hold crypto by proxy, as it allows them to invest through listed securities. “It's no different from buying a share in Microsoft—the key difference is that the entire value of the security is tied to the underlying crypto asset, making it a proxy for direct crypto ownership,” Rangar said.

The traditional model for digital asset ETFs and ETNs generally involves buying and holding assets like Bitcoin or Ethereum, hoping for price appreciation. However, Fineqia’s innovation moves beyond this model, offering a method to earn consistent yields from the underlying digital assets. The company believes this yield-generating feature will not only appeal to seasoned crypto investors but also open the door for more institutional investors, including family offices and endowments, who are restricted from holding the assets directly.

That approach could help to deliver better returns for investors than simply buying and holding cryptocurrencies.

Combining crypto upside with stability

The move comes as institutional investors seek new ways to generate yield in a high-rate environment. Fineqia’s ETN differentiates itself from existing crypto investment vehicles, such as spot ETFs or futures-based funds, by allowing investors to capture yields without the technical hurdles of managing digital wallets or validator nodes. “What we’ve created is a product that gives investors the upside of holding digital assets, but with less volatility, more transparency, and an ability to generate consistent yield,” Rangar explained.

So far, the product appears to be taking off. Days after the launch on January 24, Fineqia announced that its new exchange-traded note (ETN), tied to the Cardano cryptocurrency, has already secured C$45 million in subscriptions. Fineqia earns annual management fees and takes a share of the yield it generates, making this the beginning of a larger revenue stream.

Surging demand

The launch comes amid a surge in demand for crypto-backed ETPs. The market for these instruments has soared to an all-time high of C$216 billion in assets under management (AUM) at the end of 2024, according to Fineqia’s in-house research team. That’s more than triple the C$70.8 billion recorded at the start of the year, with ETPs growing faster than the broader digital asset market.

"This is a strong start for our business, helping us generate revenue while expanding our offerings,” Rangar said.

“We’ve really broken the mould for the current industry to go beyond just buying and holding the underlying digital assets to generating ongoing yield from these digital assets.”