Crypto firm 21Shares recently launched the world’s first crypto staking ETP on the local stock exchange BX Swiss.
Digital currency firm 21Shares has debuted its new crypto staking exchange-traded product (ETP) on the BX Swiss exchange. This initiative, dubbed the 21Shares Staking Basket Index ETP, is a crypto staking index tailored to track proof-of-stake (PoS) coins. According to reports, the firm’s crypto staking ETP can track as many as 10 PoS digital currencies. It is also the world’s first crypto staking index ETP that offers diversified staking income.
However, Arthur Krause, director of ETP product at the firm’s parent company 21.co, also provided a caveat. According to Krause, the Staking Basket ETP does not engage in lending. Instead, the staking initiative is a crypto-native strategy that allows investors to commit assets that support validating blockchain transactions. Meanwhile, lending is a traditional financial strategy that sees lenders compensated for the risk involving the potential default of lent assets.
On 21Shares’ impetus for launching the Staking Basket Index ETP, Krause explained:
“Our research has shown that investors are interested in diversified, crypto-native return streams – especially amid crypto winter.”
Furthermore, Krause also added that the crypto staking ETP would be an attractive addition to several portfolios.
More on New 21Shares ETP
The exchange-traded product immediately starts trading on the local bourse BX Swiss under the ticker STAKE. In addition, at launch, the 21Shares STAKE ETP tracks six digital currencies. These include Binance Coin (BNB), Cardano (ADA), Cosmos (ATOM), Polkadot (DOT), Solana (SOL), and Tezos (XTZ). Furthermore, this index will rebalance on a semi-annual basis in March and September following market shifts.
Krause played up the immediate benefits that stake offers to investors, explaining:
“STAKE provides value for investors by using the ETP’s assets to generate a passive yield that may offer additional returns by contributing to the network’s security.”
In addition, Krause emphasized that assets widely linked to defunct crypt exchange FTX do not have any impact on 21Shares’ products. Citing Solana as an example, the director noted that “Solana – like virtually all other crypto assets – experienced significant price declines in 2022 but suffered no fundamental impairment that would preclude its inclusion in the index. ”
With STAKE’s addition, 21Shares and parent company, 21.co, now offer 47 crypto ETP products across 12 exchanges in nine countries. In addition, these ETPs offer a safer and more secure way for crypto exposure by providing a direct crypto investment alternative.
The STAKE ETP launch comes a few years after 21Shares started dabbling into staking exchange-traded products. In 2019, the digital currency firm launched its 21Shares Tezos Staking ETP (AXTZ). Furthermore, 21Shares also debuted its Solana Staking ETP (ASOL) in June 2021.
However, both products experienced a marked decline last year due to the sustained bear market. ETPs have settled into an encouraging rally since the beginning of 2023. This trend is underscored by the year-to-date (YTD) upswings of AXTZ (38%) and ASOL (78%).