21Shares AG is launching the world’s first Polkadot ETP on the regulated segment of the Swiss stock exchange on Thursday February 4th, 2021.
Hany Rashwan, CEO 21Shares AG
Last Friday, Polkadot was admitted by the Index Provider to the 21Shares HODL basket ETP as second largest constituent after bitcoin (BCH being removed) and as such, makes it is the perfect timing to add an additional single asset ETP to the already wide range of crypto ETPs, 21Shares offers. The 21Shares prospectus highlighted the DOT inclusion in October 2020(third suppl.).
Polkadot serves as a blockchain of blockchains, allowing otherwise independent blockchains to communicate with each other, share security features and transfer assets freely amongst themselves.The DOT token is the native token of the Polkadot network. It serves a couple of vital roles in the system: It is designed to participate in governance decisions, including tabling proposals and voting.
In addition, it is used as an electronic payment system. With its market capitalization currently standing at over $16.8 billion, the DOT token now surpasses that of XRP by over $4 billion and has attained the status of third largest cryptocurrency. Though the popularity of the DOT token has increased substantially over the past months, it is still not easy for non-technical users to buy and hold and interact with it. The DOT ETP lowers the barriers to entry for newcomers to the crypto asset industry and allows a much wider audience to be able to participate in its development.
The launch comes in light of the recent surge in interest for this asset class. 21Shares AG has seen a 5-fold increase in demand across its suite of crypto ETPs since Q3 2020. This is based on the amount of new inflows into the ETPs. That demand came mainly from institutional investors who have preferred an institutional-grade ETP versus others structures currently available on the market.
“We remain committed to the unprecedented demand we are seeing from institutional investors wanting exposure to crypto assets and 21Shares remains ahead of the curve for delivering innovative yet simple financial products on the market. Our expertise and experience reflect the clear advantage we have over other market participants” Hany Rashwan, CEO 21Shares AG, says. “After investors purchase their first Bitcoins through our ETPs, there is a natural transition to invest in other crypto assets. We have consistently delivered a range of products over the last two years demonstrating our stronghold in the D-A-CH region. European investors are approaching us to launch new products based on other key crypto assets to enable them easy access without the need of a private key or unregulated wallets and exchanges. We benefit from trusted partners for the liquidity provision and upon continued institutional demand, we are launching the polkaDOT ETP to give investors a safe, regulated and easy way to obtain §exposure to this exciting new blockchain technology. In the next 3 months, we aim to add 2 to 3 more innovative ETPs as well as new European exchange listings. No other issuer in this industry enjoys such a wide range of crypto ETPs and on so many European exchanges’ regulated segments.”
The DOT ETP will allow clients to diversify and gain exposure to the multi-chain application environment that enables cross-chain interoperability on a level previously not possible via their traditional broker or bank. The ETP structure is superior to other structures such as certificates or structured products due to its 100% physical collateralisation. Each share is fully collateralised by the corresponding amount of physical DOT tokens. In addition, on exchange liquidity provision is assured by our existing ETP market markets who have supported us since inception back in November 2018. This allows even more conservative institutions to safely hold this asset class via an Exchange Traded Product.