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Swiss crypto company 21Shares recently launched a whole new staking dedicated exchange-traded product (ETP). The crypto staking index, Staking Based Index ETP, will be tracking up to ten proof-of-stakes crypto assets.
The PoS-focused ETP launched on January 18 and started trading on BX Swiss, a local stock exchange. Its trading ticker is STAKE.
There were six crypto assets under the STAKE ETP at the time of launch. This includes PoS cryptocurrencies like BNB (BNB), Cardano (ADA), Solana (SOL), Cosmos (ATOM), Polkadot (DOT), and Tezos (XTZ). The index is said to get rebalanced after every six months, that is in the months of March and September.
Following the recently launched ETP, the number of ETP products facilitated by 21.co and 21Shares reached 47 and they are available over twelve different exchanges across nine countries.
ETP product director at 21Shares parent company 21.co, Arthur Krause said STAKE provides investors with value along with using the assets of ETP for generating a passive yield. This might offer “additional returns by contributing to the network’s security.”
The exchange-traded exchange traded products (ETPs) intend intends to give a safe and secure way to investors for accessing the exposure to cryptocurrencies by an alternate offering to the direct investment in the digital assets.
The launch of STAKE ETP comes a few years after 21Shares started experimenting with staking ETPs. In 2019, 21Shares debuted the 21Shares Tezos Staking ETP (AXTZ) and launched the 21Shares Solana Staking ETP (ASOL) in June 2021.
Both products experienced a significant decline in 2022, in line with the bear market. However, the ETPs have performed well in the first weeks of 2023, with year-to-date performance surging 38% for AXTZ and 78% for ASOL.
According to Krause, “Solana — like practically all other crypto assets — saw severe price drops in 2022 but suffered no fundamental damage that would bar its inclusion in the index.” Krause underlined that assets like Solana have had no impact on 21Shares’ offerings.
Krause noted that the 21Shares Staking Basket ETP does not engage in any lending whatsoever. According to him, lending is a conventional financial strategy where lenders are compensated for the risk that the assets they lend may not be returned, whereas staking is a cryptocurrency-native strategy that enables investors to pledge assets to support the process of validating blockchain transactions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
