A ‘Surge in Interest’ in DOT Leads 21Shares to Launch World’s First Polkadot ETP on SIX
Amidst the growing interest in decentralized finance (DeFi), investment product provider 21Shares AG, previously known as Amun, has launched the world’s first Polkadot (DOT) exchange-traded product (ETP).
Zurich-based 21Shares is the issuer of crypto ETPs and will be launching the DOT ETP on the Swiss stock exchange (SIX Exchange) on Feb 4th, 2021.
The move came right on the heels of 21Shares adding DOT to its HODL basket. DOT is the second-largest constituent after Bitcoin in the product. Hany Rashwan, CEO 21Shares AG, said in a statement,
“We remain committed to the unprecedented demand we are seeing from institutional investors wanting exposure to crypto-assets.”
According to the chief executive, investing in other crypto-assets is a natural transition from Bitcoin for investors, and European investors have been approaching the company to launch new products.
While the company has been seeing a 5-fold increase in demand, mainly from institutional investors, across its suite of crypto ETPs since Q3 2020, it says there has been a “recent surge in interest” for DOT.
With DOT, 21Shares AG aims to provide “exposure to the multi-chain application environment that enables cross-chain interoperability on a level previously not possible via their traditional broker or bank.”
Created by Ethereum co-founder Gavin Wood, DOT is the 5th largest cryptocurrency with a market cap of $15.28 billion. Currently trading at $16.84, DOT is up 104% so far in 2021.
The firm says that despite the rising popularity of the DOT token, it is “not easy for non-technical users to buy and hold and interact with it,” as such, with its ETP, they are lowering the barriers to entry for newcomers. Rashwan said,
“We are launching the DOT ETP to give investors a safe, regulated, and easy way to obtain exposure to this exciting new blockchain technology.”
Each share of the product is fully collateralized by the corresponding amount of physical DOT tokens.
The company is preparing to add more ETPs in the next three months and new European exchange listings.