Switzerland-based cryptocurrency company 21Shares has launched its crypto staking ETP on the BX Swiss exchange. When the Staking ETP is released, it will include 6 altcoin projects, including Cardano and BNB.
21Shares launches staking ETP featuring these 6 altcoin projects
The crypto investment firm offers new investment options on Proof-of-Stake (PoS) coins by launching a new crypto exchange trading product (ETP) dedicated to staking. On January 18, the company launched the 21Shares Staking Basket Index ETP, a crypto staking index designed to track up to 10 PoS cryptocurrencies. The ETP immediately started trading on the local exchange BX Swiss with the code STAKE.
21Shares’ STAKE ETP tracks six cryptos at launch, including BNB, Cardano, Cosmos, Polkadot, Solana, and Tezos. The index will rebalance semi-annually in March and September following market changes.
Cathie Wood-backed 21shares offers first staking index ETP https://t.co/9wfX1IfZDm
— The Block (@TheBlock__) January 18, 2023
Arthur Krause, ETP product director at 21.co, the parent company of 21Shares, emphasizes that Staking Basket ETP does not engage in lending. With the addition of STAKE, 21Shares and its parent company 21.co provide 47 crypto ETP products across 12 exchanges in nine countries. ETPs aim to provide investors with a safe and secure way to invest in crypto by providing an alternative to direct crypto investment.
“STAKE provides value to investors by using the assets of the ETP to generate a passive return that can offer additional returns by contributing to the security of the network,” said Arthur Krause, product director of ETP at 21.co.
Launch of STAKE ETP took place several years after trials
The launch of the STAKE ETP comes a few years after 21Shares started experimenting with staking ETPs. 21Shares, which we refer to as Kriptokoin.com, launched 21Shares Tezos Staking ETP (AXTZ) in 2019 and 21Shares Solana Staking ETP (ASOL) in June 2021.
Both products experienced a significant decline in 2022 in line with the bear market. However, ETPs performed well in the first weeks of 2023, with performance up 38% for AXTZ and 78% for ASOL since year-to-date.
Krause emphasized that assets such as Solana, which were heavily linked to the crashing FTX exchange, had no impact on 21Shares’ products, and said:
Solana – like nearly all other cryptocurrencies – experienced significant price drops in 2022, but did not experience any fundamental deterioration that would prevent it from being included in the index.
Cathie Wood-backed 21shares presents its first staking index ETP
The launch of STAKE comes after some major global regulators voiced concerns about cryptocurrency staking. SEC chairman Gary Gensler argued in September 2022 that crypto staking is “very similar” to lending, citing bankruptcies at loan companies in the middle of the 2022 bear market.
Now the first crypto staking index ETP comes as the cryptocurrency market sees a slight rebound in pricing after falling from its November 2021 highs. 21Shares was already offering the 21Shares Solana Staking ETP and the 21Shares Tezos Staking ETP. The Cathie Wood-backed crypto investment firm has now unveiled the 21Shares Staking Basket Index ETP, the first crypto staking index ETP to offer diversified staking income.
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