As a provider of crypto exchange-traded products (ETP), 21Shares provides traditional investors with the opportunity to invest in the largest participant in the liquid staking ecosystem. To this end, the firm has introduced a way to invest in the leading altcoin project.
21Shares introduced ETP product for this altcoin
The aforementioned product provides investors with the opportunity to invest in a single asset to the liquid staking leader. The Swiss-based firm has classified this as the highest level, Class 7 risk. 21Shares mentioned the following in its specific statement:
21Shares Lido DAO ETP (LIDO) is an interest-bearing, open-ended security. Each series of the product is linked to an index or a specific underlying asset, the Lido DAO.
The products are offered to the public in 22 European Union countries, including France, Germany and Portugal. It is also traded on various exchanges such as SIX Swiss Exchange, BX Exchange and Stuttgart Exchange. ETP currently has $100,000 in assets under management (AUM) compared to 21Shares’ total AUM of more than $1.1 billion.
The product is in the ‘high risk’ category
21Shares has marked this product as “high risk” in several categories. This means that there is market risk, regulatory risk, secondary market risk, the risk of an extraordinary event due to the lack of capital protection, and the risk of a rapid change in the value of a crypto-asset that could drop to zero. In a document containing the product’s basic information, 21Shares made the following statement:
We have classified this product as the 7th class out of 7, which is the highest risk class. This means that the potential losses from future performance are at a very high level. Also, poor market conditions are very likely to affect the fund’s capacity to pay you.
Liquid staking allows users to maintain liquidity despite locking their coins to earn rewards for securing the Blockchain network. According to data from blockchain analytics firm Nansen, liquid staking Lido has a 76% market share in liquid staking derivatives on Ethereum. It has also staked more than $13 billion in ETH.
21Shares closes product traded on 6 crypto exchanges
As we reported as Kriptokoin.com, 21Shares has closed six products in the past months due to low demand. Among the products shut down are 21Shares Crypto Layer 1 ETP (LAY1), 21Shares DeFi 10 Infrastructure ETP (DEFII), 21Shares S&P Risk-Controlled Bitcoin Index ETP (SPBTC), 21Shares S&P Risk-Controlled Ethereum Index ETP (SPETH), and 21Shares USD Yield ETP (USDY). is located. The firm closed all of them by April 6. The sixth product, 21Shares Terra Classic ETP (LUNA), continued to be traded until 12 June. This product has come to an end as of today. The total amount of assets under management for the six products that were closed was less than $700,000.
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